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Tax to Poland from US non resident company


Appreciate4Life 5 | 7
24 Oct 2012 #1
I want to set up a company in Delaware, US as a non resident.

(The business will be book publishing online, and paid membership sites)

Anyone who have done this, living in Poland? (I'm living in Poland, but I'm not Polish)

I will not be doing any business in the US, I'm merely interested in setting up a company in a country that everything is in English (as I do not speak any Polish). And eventually I will want to move there.

Do I have to register myself as self-employed in Poland, to run a business in US? Will I have to hire an accountant in Poland, and how much will this cost me per month? (total cost per month of being self employed and paying for an accountant). I guess all the tax papers in Poland are in English, so I'll need someone to deal with the paperwork?

And I guess I have to pay tax to Poland, since I live there, and will have a company with income, even if it's based in the US?

Or is this a lot more simpler than I expected? Like, can I just pay tax to the US, and not have to deal with the Polish tax office at all?

Thank you for your time and attention, and I really appreciate you looking into this for me. Hope to get some really positive replies soon :))))))))))))))))))))))))))))))))))
cms 9 | 1,271
24 Oct 2012 #2
Pay an accountant for advice and don't be a cheapskate.

You can set up your Delaware company but the problem you will have is how to extract cash from it. Dividends would be taxed at 19 percent, salary at 32 and interest in a variety of ways - that's just the polish tax. I think you would have 2 or 3 percent effective tax in Delaware too.

Cyprus is probably easier and cheaper - everything in English and the same tax advantages as for Delaware with a few extra. Delaware is really only if you have income in seven figures.
OP Appreciate4Life 5 | 7
24 Oct 2012 #3
Thanks for your quick reply!

What do you mean when you say "the problem you will have is how to extract cash from it"?

How much would an English speaking reliable accountant cost me in Krakow?
delphiandomine 83 | 17,732
24 Oct 2012 #4
Cyprus is probably easier and cheaper - everything in English and the same tax advantages as for Delaware with a few extra.

Isn't the Cyprus benefit (9.5% as opposed to 19% tax on dividends) finishing at the end of the year?

The real issue I can see here is residency - unless the business is properly registered in Poland, he's not going to be able to use it to get the residence permit.

Dividends would be taxed at 19 percent, salary at 32 and interest in a variety of ways - that's just the polish tax.

Is there anything stopping him from paying himself dividends every month?
jon357 63 | 14,151
24 Oct 2012 #5
Is there anything stopping him from paying himself dividends every month?

Unless the rule's changed, you can declare a dividend twice yearly if you have an Sp. z o. o..
OP Appreciate4Life 5 | 7
25 Oct 2012 #6
I e-mailed an accountant in Poland about this issue, and this is what she told me:

"According to general rules of international tax law income from dividends is taxable in the country where the company is established"

So does this mean that I do not have to think about paying tax to Poland even if I live there?

Could this be similar to the situation I'm in now, I work in Norway and only pay tax to Norway, even if I live in Poland?
cms 9 | 1,271
25 Oct 2012 #7
"According to general rules of international tax law income from dividends is taxable in the country where the company is established"

In my view that is incorrect and that in many countries including Poland you can be taxed on worldwide dividend income minus deductions for double tax. Getting some english advice would probably cost you about 1000 euro.

Isn't the Cyprus benefit (9.5% as opposed to 19% tax on dividends) finishing at the end of the year?

Probably yes but the govt needs to act on that in next 30 days, otherwise another year. But there are plenty of other advantages to a Cyprus company especially in a royalties / licencing situation and its a lot less hassle than a Polish entity. No idea about effects on residency permits.
jon357 63 | 14,151
25 Oct 2012 #8
Probably yes but the govt needs to act on that in next 30 days, otherwise another year. But there are plenty of other advantages to a Cyprus company especially in a royalties / licencing situation and its a lot less hassle than a Polish entity. No idea about effects on residency permits.

One distinct disadvantage is that the Tax Office pay extra special attention to companies operating in PL but registered abroad.
OP Appreciate4Life 5 | 7
28 Oct 2012 #9
So, what are the best options for me, in your opinion?


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