Small business is getting ready for the season
Small business is getting ready for the season InfoCredit Microenterprise Index In April, there was still a visible recovery in economic activity, which began at the end of the first quarter. In the past month, 25.9 thousand new economic activities were registered, compared to 26.2 thousand in March 2021 and… 10.2 thousand in April 2020 – according to CEIDG data. In April 2021, we also recorded more resumptions of activity (13.4 thousand compared to 12.5 thousand in March 2021) and fewer suspensions (16.3 thousand compared to 18.7 thousand in March 2021). InfoCredit microenterprise indices went up again strongly after April. The indicator describing the ratio of new to closed activities increased to +11,770 points from +10,171 points after March, and the ratio of resumed to suspended increased to -2,977 from -6,133 points. Since March, there has been a greater propensity to start and resume business activities. These may not be record values, as in the best months of last year, but it is clear that we are in a completely different situation than in April 2020. A year ago, small businesses were digging in, trying to cope with the restrictions resulting from the epidemic. Today, they are waiting for easing and trying to adapt to the opportunities that appear on the horizon. – April and early May brought entrepreneurs hope for a return to normality. The catering and hotel industries were waiting for the restrictions to be lifted and were slowly preparing to welcome guests. Poles, in turn, finally started planning trips and vacations. This encouraged the seasonal suspension of business activities. We hope that this trend will continue. However, this will depend on the decline in the number of cases and the pace of vaccinations – says Jerzy Wonka, Development Director at InfoCredit. The IC Index, describing the ratio of new to closed businesses, is at its highest since October 2020, when we were just entering the 2nd wave of the epidemic. In turn, the IC Index describing the ratio of reopenings to suspensions is at its highest since the summer of 2020, i.e. the holiday season, when hotels, guesthouses and restaurants could enjoy the season. – With spring, hope returned for doing business in industries that were most affected by the epidemic. Especially since Poles want to use hotels and restaurants, the possibility of active recreation. The macro data that is coming in is quite optimistic. The first quarter of this year was rather the last in which we experienced a decline in GDP. Unemployment is relatively low, and wages in the corporate sector rose significantly in April. Although we feel inflation, interest rates are at record lows. This encourages consumption – adds Jerzy Wonka. In his opinion, the only threat that has appeared on the horizon for entrepreneurs is the New Deal. Small businesses are currently analyzing how the burden will increase with the estimated revenues in the coming months. – I am afraid that this may affect entrepreneurs’ decisions on the choice of the form of business activity – says Jerzy Wonka. How do we calculate the InfoCredit Index? The InfoCredit Index was created to track trends in micro-entrepreneurship, alternative forms of employment and self-employment at a time when the situation on the labor market and in individual industries is changing dynamically. The index, which is developed by the oldest company in Poland analyzing the economy, takes on a positive value when there are more new businesses than closures. When there are fewer than completed – negative. In the same way, we also track the ratio of resumed to suspended activities. Previous newsNext news Potrzebujesz wyceny lub zamówienia? Napisz do nas bok@inocredit.pl
Thaw in micro-enterprises
Thaw in micro-enterprises InfoCredit Microenterprise Index After several months of stagnation, the number of new business activities in March 2021 increased to 26,229 from 21,285 in February (23,835 in January this year). In March 2020, 18,291 were recorded – according to data flowing into CEIDG.The entire first quarter of 2021 in business activities – thanks to a fairly good March – also looks promising. There were more new activities than a year ago. We also recorded significantly fewer suspensions (61,281 in Q1 2021 compared to 94,861 a year earlier). InfoCredit microenterprise indices went up significantly after March. The indicator describing the ratio of new to closed activities increasedto +10,171 points from +7,678, and the ratio of resumed to suspended increased to-6,133 points from -8,197 points. The last month of Q1 2021 significantly changed the picture of micro-entrepreneurship that had been emerging since the autumn of last year. Poles were more willing to start new businesses, and there were significantly more resumptions month-on-month (m/m) and year-on-year (y/y). Suspensions remained unchanged m/m and significantly decreased y/y. What does this mean? – The March data is quite optimistic, but it is difficult to talk about a change in trend, considering the circumstances, i.e. the third wave of the epidemic. On the one hand, small businesses are certainly gradually adapting to the new reality. I do not want to say that it is becoming ordinary. Entrepreneurs are increasingly aware that things will not be the same as before COVID and are more and more willing to make strategic decisions. On the other hand, caution is still visible. That is why in March we have not yet noted any major positive changes, although it should be emphasized that there has not been such panic in suspensions as last year for 11 months – says Jerzy Wonka, Development Director at InfoCredit. Let us recall – last year, the end of the first quarter brought a wave of suspensions of activities due to the first restrictions and growing uncertainty. In March 2020 alone, 48,624 activities were suspended, and 28,432 in the last 10 days alone. Meanwhile, in the whole of March 2021, we recorded 18,652 suspensions. – It is also encouraging that in the entire first quarter we recorded 71,349 new businesses, compared to 69,517 a year earlier. The number of closures and reopenings is comparable. There are significantly fewer suspensions than a year ago. And this is not the effect of pushing full-time employees into business activity, taking into account the latest preliminary data from the labor market. The unemployment rate in March was 6.4% and was slightly lower than in February. However, we will be able to get a full picture of what is happening in microentrepreneurship after the second quarter of 2021, when the data will be relatively comparable. We will be able to compare the entire 3 months of the 2021 epidemic with the entire 3 months of the 2020 epidemic – adds Jerzy Wonka. How do we calculate the InfoCredit Index? The InfoCredit Index was created to track trends in microentrepreneurship, alternative forms of employment and self-employment at a time when the situation on the labor market is changing dynamically. The index, which is developed by Poland’s oldest company analyzing the economy, takes on a positive value when there are more new businesses than closures. When there are fewer than closed businesses, it is negative. In the same way, we track the ratio of resumed to suspended businesses. Previous newsNext news Potrzebujesz wyceny lub zamówienia? Napisz do nas bok@inocredit.pl
Business has chosen a waiting tactic
Business has chosen a waiting tactic InfoCredit Microenterprise Index In February 2021, 21.3 thousand businesses were established, 13.6 thousand were closed. Almost 10 thousand were resumed and 18.2 thousand were suspended. In the same period last year, the figures were 23.4 thousand (new), 13.1 (closed), 11.7 (resumed) and 19 thousand (suspended), respectively – according to CEDIG data. The advantage of suspending over unsuspending in February 2021 continues to fall. The InfoCredit index increased from -15,816 points after January to -8,197 points currently. There were 7,678 more new businesses than those closed. This means another monthly increase in the index describing the ratio of new to completed businesses from 6,093 points after January and from 1,306 points in December 2020. There would be nothing alarming in the February data, if not for the fact that fewer and fewer applications are being submitted to CEIDG (excluding those for minor changes in entries). In February 2021, CEIDG received a total of 63,000 of them, compared to 67.2 thousand a year earlier. So there are still not only fewer new and suspended businesses, but also fewer closed and suspended businesses. Business has dug in and is waiting for better times. This applies not only to small businesses, but also to companies registered in the National Court Register. This is clearly visible in the year-on-year comparison. All the more so because February 2020, as a reference point, was the last month of relative “normality” and fairly good economic conditions before the outbreak of the epidemic. What next? Of course, it depends on how the situation develops, further restrictions and consumer sentiment. The number of applications submitted to CEIDG is decreasing month by month. A similar phenomenon is beginning to be visible in the REGON register, where in February the number of newly registered entities dropped by 5.5% to 27,126 counted m/m (GUS data). When it comes to business entities, this trend was already visible last year. In 2020, 311.8 thousand entities were registered, compared to 355.8 in 2019. In the second quarter of 2020, when the epidemic was gaining momentum, 64.4 thousand were registered. entities compared to 94.4 in the same period of 2019. In the fourth quarter, when it was gaining momentum again, 75.9 thousand were registered, compared to 78.3 thousand a year earlier. Interestingly, the number of bankruptcies is also falling significantly. – This means that Polish business is falling into a state of lethargy. We have already become accustomed to the fact that the situation is changing rapidly and new decisions have to be made from day to day. We are not sure whether tomorrow will bring tightening or easing of restrictions. This is not conducive to bold decisions and registration of new businesses. And this is both in the form of activity, which is very flexible, but also in opening new commercial law entities. There are, of course, industries that have benefited from the technological revolution and the increasing interpenetration of real and virtual reality. But there are also those that are in lethargy. By accepting help, they cannot go bankrupt – says Jerzy Wonka, Development Director at InfoCredit. In January, 24 companies declared bankruptcy. This is 19% less month-on-month and as much as 45% less year-on-year. In the fourth quarter of 2020, 106 business entities went bankrupt, compared to 159 in the same period a year earlier. In all of 2020, 528 entities went bankrupt, compared to 578 the previous year. How do we calculate the InfoCredit Index? The InfoCredit Index was created to track trends in micro-entrepreneurship, alternative forms of employment and self-employment at a time when the situation on the labor market is changing dynamically. The index, which is developed by the oldest company in Poland analyzing the economy, takes on a positive value when there are more new businesses than closures. When there are fewer than closed ones – a negative value. In the same way, we track the ratio of resumed to suspended businesses. Previous newsNext news Potrzebujesz wyceny lub zamówienia? Napisz do nas bok@inocredit.pl
More and more women on boards
More and more women on boards Did you know that… Our company was created by women. To this day, the vast majority of our team is women. Dear Ladies, thank you very much. All the best on your day! While we are wishing you well, we would like to present the share of women on the boards of Polish companies in general and just among CEOs. Dear Ladies, there are more and more of you. Congratulations. The data is presented year by year, as of March 8, from 2017 to 2021. Zarządy Prezesi 2017 24,4% 19,2% 2018 24,6% 21,4% 2019 24,7% 21,4% 2020 28,6% 21,9% 2021 29,4% 22,1% Previous newsNext news Potrzebujesz wyceny lub zamówienia? Napisz do nas bok@inocredit.pl
Fewer and fewer applications to CEIDG
Fewer and fewer applications to CEIDG InfoCredit Microenterprise Index The activity of micro-entrepreneurs continues to decline. In January 2021, CEIDG received a total of 74.7 thousand applications compared to 88.04 thousand a year earlier. The trend that we noted in Q4 2020 is therefore continuing. There are not only fewer new and suspended businesses, but also fewer closed and suspended businesses. In January 2021, 23.4 thousand businesses were established, 17.74 thousand were closed, 8.66 thousand were resumed and 24.5 thousand were suspended. For comparison – in the same period last year, it was 27.84 thousand (new), 21.76 (closed), 11.24 (resumed) and 27.2 thousand (suspended) respectively – according to CEDIG data. The advantage of those suspending over those unsuspending in January 2021 was smaller than in December. The InfoCredit Index rose from -21,834 points to -15,816. There were 6,093 more new businesses than closed ones. This means a significant increase in the index describing the ratio of new to closed businesses from 1,306 points in December. January this year was another month in which CEIDG received fewer applications than a year earlier. And all of them, including those for closing and suspending business. And it has been like this since October 2020. – We are becoming less active. Not only in terms of new businesses, but also those being resumed and closed. Yes, suspensions still clearly outweigh resumptions, or even new ones, but there were fewer of them than a year ago. One of the reasons is undoubtedly the situation in the economy and the crisis, which has hit many industries very hard. It is difficult to expect anyone to open or resume seasonal activities in the tourism or catering industry for the winter, since these were suspended – says Jerzy Wonka, development director at the analytical company InfoCredit. In his opinion, the situation is also complicated by the uncertainty related to whether the epidemic will develop or not. For now, the beginning of February has brought an increase in the number of applications, including those for new businesses, but after a few days the situation returned to normal. – It is difficult to expect micro-entrepreneurship to flourish again in the coming weeks. Especially since the Polish labor market has shown great resistance to the epidemic. Yes, unemployment increased in December, but only to 6.2% from 6.1% in November. A slightly larger increase, according to preliminary data, was recorded in January 2021, to 6.5% (5.5% a year earlier), but the situation is still not bad. Many of us value full-time employment more in uncertain times. Those who wanted to change something in their professional life from the new year and try their hand at entrepreneurship may postpone bold decisions – adds Jerzy Wonka. How do we calculate the InfoCredit Index? The InfoCredit Index was created to track trends in micro-entrepreneurship, alternative forms of employment and self-employment at a time when the situation on the labor market is changing dynamically. The index, which is developed by Poland’s oldest company analyzing the economy, takes on a positive value when there are more new businesses than closures. When there are fewer than closed businesses, it is negative. In the same way, we track the ratio of resumed to suspended businesses. Previous newsNext news Potrzebujesz wyceny lub zamówienia? Napisz do nas bok@inocredit.pl
Fewer new businesses than in 2019
Fewer new businesses than in 2019 In 2020, there was less activity than in the previous year In the whole of 2020, 262.9 thousand businesses were established, 146.2 thousand were closed, 163.3 thousand were resumed and 250.1 thousand were suspended. For comparison – in the same period last year, it was 309.9 thousand (new), 173.3 (closed), 160.3 (resumed) and 306.9 thousand (suspended) respectively – according to CEDIG data.In December last year, 1306 more businesses were established than closed. The InfoCredit index recorded a significant drop, but its value remained positive (in November 2020 it was + 7263 points). In the last month of 2020, 19.8 thousand businesses were opened, 18.5 thousand were closed.There were again significantly more people suspending their business in December 2020 than resuming it. The InfoCredit index has thus deepened its decline to -21,834 points. It is the lowest since March 2020, when entrepreneurs, under the influence of uncertainty, began to submit applications for suspension en masse. However, there was no such anxiety as in March. There was also no assault on the CEIDG system. The last weeks of December did not bring a revival in applications submitted to the CEDG. Although as many as 29,905 activities were suspended compared to 8,071 resumed, the situation was similar to the end of 2019. At that time, 10,312 activities were resumed and 37,381 were suspended. The InfoCredit index, describing the ratio of renewals to suspensions at the end of 2019, was worth -27,069 points, which is much lower than after November 2020. Usually, at the end of the year, there are much more suspensions than renewals. Compared to November, we noted a significant increase in business closures. In December 2020, there were 18,514 such applications compared to 11,086 a month earlier. There were almost as many new businesses as a month earlier (19,820 compared to 19,493 in November 2020). This is also a seasonal effect. The end of the year favors suspensions and closures, especially with such uncertainty and restrictions as today. – The last quarter brought a significant drop in activity in submitting applications to CEIDG and this is the only worrying signal from micro-entrepreneurs. This was visible in each category. In the first three quarters of this year, Poles were much more willing to take matters into their own hands. Those who saw their chance started new businesses, and there were much fewer definitely closed businesses than new ones. Those who did not see the chance suspended or closed their businesses. Now they are stuck in limbo waiting for better times – says Jerzy Wonka, Development Director of the analytical company InfoCredit. According to Jerzy Wonka, the second wave of the epidemic and the increase in cases in the autumn could have influenced the decisions of micro-entrepreneurs. For now, when restrictions in many industries are maintained and extended, and revenues are significantly lower, it is difficult to be optimistic and start or suspend a business. Hence – perhaps – the lower number of applications than at the end of 2019. The second issue is the much better situation on the labor market than it might have seemed six months earlier. The registered unemployment rate in December was 6.2% – according to preliminary data from the Ministry of Development, Labor and Technology. At the beginning of 2020, it was 5.5%. The economic collapse did not result in a significant increase in unemployment. – Many people still believe that a full-time job in difficult, unstable times is a better idea than starting a business on your own. This is also the reason why many people could have postponed starting a business in the last quarter of 2020 – adds Jerzy Wonka. How do we calculate the InfoCredit Index? The InfoCredit indicator was created to track trends in micro-entrepreneurship, alternative forms of employment and self-employment at a time when the situation on the labor market is changing dynamically. The index, which is developed by the oldest company in Poland analyzing the economy, takes on a positive value when there are more new businesses than closures. When there are fewer than closed ones – a negative value. In the same way, we track the ratio of resumed to suspended businesses. Previous newsNext news Potrzebujesz wyceny lub zamówienia? Napisz do nas bok@inocredit.pl
The traffic in CEIDG has weakened somewhat
The traffic in CEIDG has weakened somewhat InfoCredit Microenterprise Index In November of this year, 7,263 more businesses were established than were closed. The InfoCredit index remains in a significant positive position, but it is lower than in November 2019 (then +9,217 points). This is due to the fact that since September 2020, the number of new businesses has been falling slightly each month. The number of businesses closed since September has remained consistently above 12,000 per month. There were significantly more people suspending their businesses in November 2020 than those resuming them. The InfoCredit index has thus deepened the decline to -18,118 points. It is also lower than in November 2019 (then -14,084). Overall, however, comparing 11 months of this year to the same period in 2019, nothing alarming is happening. From January to November 2020, 243,100 businesses were established, 127,658 were closed. 155,190 were resumed, and 250,118 were suspended. For comparison – in the same period last year, the figures were 290,314 (new), 149,534 (closed), 149,979 (resumed) and 269,473 (suspended) respectively – according to CEDIG data. The closer to the end of the year, the less activity in CEIDG. It might seem that what was supposed to happen in the current – very volatile year for the economy – has already happened. – However, it is worth waiting until the end of December to draw final conclusions. At that time, the number of closed and suspended businesses usually increases significantly, seasonally. Today, after 11 months of this year, it seems that the situation is starting to stabilize. However, I do not think that this year we will improve the result from 2019 in terms of new businesses. At that time, there were almost 310 thousand of them – says Jerzy Wonka, development director of the analytical company InfoCredit. This year is very difficult for entrepreneurs. Especially the smallest ones. The end of March brought a sudden increase in the number of suspended businesses under the influence of impulse and uncertainty. The next one is a gradual increase in interest in this form of economic activity. Until September. Now, the data from 2019 and 2020 are becoming more and more comparable. Does this mean a return to normality? – Now, in October and November, we see stabilization, after six-month fluctuations. The end of the first quarter and the so-called panic among micro-entrepreneurs was a one-off phenomenon. Later, by the end of Q3, we saw an increase in interest in sole proprietorships, reaching all-time record values. This was not entirely the result of us increasingly valuing independence and having an idea for a business. For employers and clients, this is a very convenient form of remuneration for co-workers and service providers. Much more convenient than, for example, a full-time job or a civil law contract. Especially in times when you have to keep an eye on costs – adds Jerzy Wonka. How do we calculate the InfoCredit Index? The InfoCredit Index was created to track trends in micro-entrepreneurship, alternative forms of employment and self-employment at a time when the situation on the labor market is changing dynamically. The index, which is developed by the oldest company in Poland analyzing the economy, takes on a positive value when there are more new businesses than closures. When there are fewer than closed ones – a negative value. In the same way, we track the ratio of resumed to suspended businesses. Previous newsNext news Potrzebujesz wyceny lub zamówienia? Napisz do nas bok@inocredit.pl
Survey: SpK about CIT
Survey: SpK about CIT 97% of surveyed entrepreneurs-co-owners of limited partnerships believe that CIT will reduce their willingness to invest. 86.5% claim that CIT will reduce their willingness to employ. 94.5% believe that as a result of the new tax, the competitiveness of limited partnerships will decrease. 65.75% are considering changing the form of business as a result of legal changes, and 27.75% are considering closing their business. – according to a survey conducted in October by InfoCredit in cooperation with CRIDO and the Association of Entrepreneurs and Employers (ZPP). Entrepreneurs and co-owners of limited partnerships unequivocally assessed the impact of introducing CIT on the future of their businesses. The survey results confirm the conclusions from the reports presented in October by CRIDO, ZPP and InfoCredit “SPK in Poland – data analysis” and “Taxation of limited partnerships in Europe”. – The changes are most disturbing for Polish, small, family companies. They were the ones who clearly dominated the survey, responding most willingly and quickly. Over 87% of the completed surveys came from companies employing up to 49 people – says Jerzy Wonka, InfoCredit Development Director. The vast majority of respondents, as much as 97%, believe that the tax will reduce their willingness to invest. Only 2.75% claim that it will have no effect, and 0.25% that investments will increase. 86.5% claim that CIT will reduce their willingness to employ (0.25% increase, 13.25% no effect). 94.5% believe that after the introduction of double taxation, the competitiveness of their companies will decrease (1.25% increase in competitiveness, 4.25% no effect). Entrepreneurs believe that continuing to run their business as a limited partnership after the introduction of CIT ceases to be justified. As many as 65.75% are considering changing the form of business activity, and 27.75% are considering closing the company. Only 6.5% responded that CIT would not change anything. – Contrary to the declarations of the Ministry of Finance, the survey results showed what had already resulted from the reports we had prepared earlier. The overwhelming majority of entrepreneurs, especially small ones, had a decidedly negative opinion of the idea of taxing limited partnerships with CIT. We can only hope that the Senate will hear the voice of Polish entrepreneurs and organizations representing them and, as a result, such bad regulations will not be passed. All the more so because this is happening at a time of creeping lockdown and many other problems that companies have to face. In such circumstances, discouraging entrepreneurs from fighting for their businesses is a very harmful action for the economy – comments Mateusz Stańczyk, partner in the tax advisory team at CRIDO. – The survey results confirm our assumptions – taxing limited partnerships with CIT is a powerful blow to investment and employment. What’s more, it coincides with the crisis caused by the coronavirus epidemic, during which the willingness of entrepreneurs to invest has already fallen to a record low level. It is difficult to understand the legislator’s determination to push for this solution. It will not lead to a reduction in tax abuse, because it is not limited partnerships that are the problem in this respect – not only have we shown this in the reports published so far, but the Ministry of Finance itself has also admitted it. According to information provided by the ministry, the tax office has only challenged tax schemes using limited partnerships six times. One effect of this poor regulation may be to make it more difficult to emerge from the crisis caused by COVID-19 and to practically eliminate limited partnerships from the Polish economic landscape – says Jakub Bińkowski, director of the Department of Law and Legislation at the ZPP. About the survey The survey was conducted from 16 to 30 October in electronic form. We sent questions to limited partnerships registered in Poland and included in the InfoCredit database. We received 400 responses. The most active were micro and small businesses. 189 responses came from companies employing up to 9 people (47.25%), 160 from companies employing from 10 to 49 people (40%). Previous newsNext news Potrzebujesz wyceny lub zamówienia? Napisz do nas bok@inocredit.pl
InfoCredit supports the film “The Lost River”
InfoCredit supports the film “The Lost River” InfoCredit has become an official partner and sponsor of the film “The Lost River”. This is the first documentary that tells the story of the land that once stretched along the Vistula from Warsaw’s Saska Kępa to the mouth of the Pilica. Director Adam Rogala and cameraman Wiktor Strumiłło invested their own capital to tell the story of the former granary of Warsaw, the people who fed the capital and contributed to its economic development. After the Vistula was regulated, few people remember the Urzecze today as a land flowing with milk and honey, where the local community – the Olęders, Polesieks and Oryle, i.e. the Vistula raftsmen – managed in harmony. We owe the development of the Urzecze to the Olęders – newcomers going up the Vistula from northern Poland, who in turn arrived there from Frisia and the Netherlands. They were free farmers. They leased wastelands, areas that were sometimes flooded several times a year by the Vistula. We owe it to them that raspberries, strawberries, gooseberries and currants were brought to Urzecze. Thanks to the technology they brought to the Vistula, their crops were many times higher than those obtained by serfs. They also introduced new construction technologies to minimize the effects of floods. The Olęders consciously settled south of Saska Kępa, so that it would be easier for them to sail with cargo to Warsaw. History has not been kind to the Olęders. They were expelled from Poland right after World War II. – We decided to support the film as the first sponsor and partner, because we were enchanted by this story. Together with Adam Rogala and Wiktor Strumiłło, we want to save Urzecze from oblivion. At InfoCredit, we share the values of the Vistula farmers from years ago. It is entrepreneurship, innovation, specialist knowledge, and above all freedom and tolerance. The Olęders were free people, they invested the money they earned, surrounded themselves with books – says Iwona Surdykowska-Huk, owner of InfoCredit. And he adds that especially today, when we are absorbed in everyday matters, it is worth recalling stories that are a source of inspiration, hope and motivation to act. – Urzecze owes a lot to the Olęders. Local farmers learned from them the art of farming – land and crafts. Draining wetlands and using fertile alluvial soils brought by the Vistula so that the fields would yield high yields. In the field of crafts, the Olęders shared with the indigenous people of Mazovia, for example the art of making barrels. They were a model of industriousness. Such a farmer would work even during a chat with a neighbour – trimming bushes or repairing tools. I was fascinated by their perseverance and tenacity. After all, there were times when floods that visited Urzecze took away the farmer’s entire fortune, because the house and buildings along with their belongings were carried away by the Vistula. And despite this, they had the strength to start life from scratch – says director Adam Rogala. Wiktor Strumiłło, the cameraman of the film, emphasises that the proximity of the navigable river was beneficial to the Olęders: – In the pre-embankment era of the Vistula River, there were no roads that would allow easy access to sales markets. It was easier to get to Warsaw via the Vistula, which became a motorway at the time. Rafters, who can be compared to truck drivers, sailed along it. The Urzecze became a granary for Warsaw, grain, vegetables and fruit flowed to it. Plentiful and simply delicious. But also building material for the needs of the developing city – stone, gravel and sand. The more persistent of the Olęders sailed with goods even to Gdańsk. From there, they brought home furnishings – furniture, equipment such as coffee grinding and brewing devices, unknown to their neighbours. The creators of “Urzecze” plan to distribute the film more widely, prepare an English and Dutch version and present it at Polish and international festivals. We encourage our partners and clients to support this initiative. Together we can save a beautiful story. About the film “Zaginione Urzecze”, prod. 2020. Directed by Adam Rogala, cinematography by Wiktor Strumiłło, music by “KAPELA ZE WSI WARSZAWA”, winner of the Fryderyk 2018 for the music project RE:AKCJA MAZOWIECKA. Patron of the film: InfoCredit Teaser: https://www.youtube.com/watch?v=bpx3cqVyvGo&feature=youtu.be Previous newsNext news Potrzebujesz wyceny lub zamówienia? Napisz do nas bok@inocredit.pl
Press release
Press release Limited Partnerships in Europe and CIT Contrary to the claims of the Ministry of Finance, in most of the countries analyzed in Europe, limited partnerships (or similar ones) are tax-transparent companies. The taxation of limited partnerships in other European countries is not related to the intensified fight against tax avoidance in recent years. Most rationally operating companies will change the form of conducting business to a form that ensures the current level of taxation and foreign companies will pay the same as before. The state budget will not gain much, Polish entrepreneurs busy fighting for survival in the times of the pandemic will lose – according to the report by CRIDO, ZPP and InfoCredit “Taxation of limited partnerships in Europe”. The authors of the report looked at the taxation of limited partnerships in 16 European countries. In most of the countries analyzed, limited partnerships are tax-transparent (not taxed with CIT). They include: Austria, Denmark, Finland, Ireland, Malta, Germany, Sweden and the United Kingdom. In other countries, CIT taxation of a limited partnership results from the historically adopted legal system. Importantly, none of the countries analysed introduced taxation of limited partnerships in the last 5 years. This indicates that in none of these countries taxation of limited partnerships is related to the intensified fight against tax avoidance in recent years. Among the limited partnerships subject to taxation, in France and the Czech Republic, income attributable to the general partner is still not subject to taxation at the level of the limited partnership (contrary to the assumptions of the Polish amendment). In none of the countries analysed are there any differences in the taxation of partners due to the degree of connections between them (i.e. limited partners holding shares in the company that is the general partner). Polish small family businesses will pay more than their counterparts in Germany In the event of the introduction of double taxation of limited partnerships in Poland, compared to the conditions of functioning of limited partnerships in Germany, the situation of Polish small family companies generating annual income not exceeding approx. PLN 230,000 will significantly deteriorate. Despite the use of the preferential 9% CIT rate by Polish SPK, the level of taxation of Polish partners will be higher than the analogous taxation of partners of German limited partnerships despite their being subject to progressive taxation. This situation will affect at least 13 thousand limited partnerships in Poland. The state budget will not gain much Due to EU regulations and international law, CIT taxation of limited partnerships will not threaten the competitive position of such companies with foreign capital in Poland. They will continue to pay tax at the same level (i.e. 19%). On the other hand, Polish entrepreneurs, wanting to maintain their competitive position, will choose an alternative form of conducting business activity. Some of them will transform into a general partnership or a professional partnership. In this way, they will be forced to sacrifice their own safety and that of their families in order to maintain the current level of taxation and competitiveness. Others (mainly larger entities) will conduct business through a limited liability company based on holding structures. As a result, the effect on the state budget will be minimal, because while protecting their competitive position, Polish companies will save themselves by changing their structure. The structure of companies in Poland and Germany In the years 2010-2019, the number of new companies in Poland grew rapidly. The largest number (176.7 thousand) were limited liability companies, which in 2019 constituted 83% of all companies in Poland. There are as many as 429.1 thousand of them compared to 40.6 thousand limited partnerships, which constitute only 7% of all companies in Poland. In Germany, this percentage is more than twice as high and amounts to 15%. Despite the significant increase in the number of limited partnerships in recent years, if only due to the reduction of business risk for entrepreneurs, we are far behind our western neighbor in this respect. – We see other alternative solutions that could help achieve the goal of reducing the risk of untaxed transfer of limited partnership income abroad, e.g. by imposing on the limited partnership the obligations of a payer. In such a situation, a limited partnership with foreign partners – acting as a payer – would be obliged to pay tax on the limited partnership income to the Polish office. Such an alternative scenario would protect Polish entrepreneurs from increased taxation while maintaining their competitive position in relation to foreign entities – comments Mateusz Stańczyk, partner in the tax advisory team at CRIDO. – The fact that limited partnerships are not used for the purposes of international tax optimization was already proven by a report published at the beginning of October. This was later confirmed by the response of the Ministry of Finance to the request for information submitted by the ZPP on this matter public. The latest report also indicates that, in general, limited partnerships are rather transparent tax-wise in Europe. The opposite regulations, i.e. those covering CIT limited partnerships, are the result of a historically adopted approach rather than intensified actions to tighten the system. It turns out, therefore, that the arguments used by the Ministry of Finance in the justification for the draft act are not based on reality. The only effect of taxing CIT limited partnerships will be a deterioration of the competitive position of Polish entrepreneurs, who will be burdened to a greater extent than their foreign counterparts – says Jakub Bińkowski, director of the Department of Law and Legislation at the ZPP. – Entrepreneurs conducting business in the form of limited partnerships are very concerned about the tax changes. All the more so because the economic situation has weakened and their costs, related to, for example, switching to a safe mode of work and investing in new communication technologies, are growing. We are collecting their opinions