KRS Law Firm · Tax Optimisation
Tax Optimisation for Businesses
Polish law does not require higher taxes to be paid where a more favourable lawful option is available. That is the basis of tax optimisation — now more often called tax planning: consciously structuring activities lawfully to reduce tax burdens while maintaining security in dealings with the authorities. We help businesses plan and implement solutions within the law and for long-term stability rather than a short-term gain. We are based in Łódź and advise clients throughout Poland.
For three years, we have ranked first in the Łódź region among medium-sized firms in Dziennik Gazeta Prawna’s ranking of the largest tax advisory firms. Combining legal and tax expertise lets us consider taxation in the context of the company’s structure, contracts and board members’ liability.
KRS
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Tax Optimisation and Tax Avoidance — Where Is the Line?
This distinction is crucial. Tax optimisation is lawful — choosing a more favourable option provided by law and supported by genuine business reasons. Tax avoidance instead uses artificial arrangements without commercial justification purely to obtain a tax advantage. Tax evasion goes further, deliberately breaking the law and constituting a fiscal offence.
The boundary is set by the General Anti-Avoidance Rule (GAAR)in Article 119a of the Tax Ordinance. It allows authorities to challenge the tax effects of artificial arrangements primarily aimed at obtaining an advantage contrary to the purpose of the legislation. The tax administration uses GAAR increasingly and has improving analytical tools, so secure tax planning must be grounded in genuine economic reasons and reliable documentation. Our role is to help keep your arrangements on the lawful side of that boundary.
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Where Tax Planning Begins
Usually with a fundamental but often underestimated choice: the appropriate business structure and taxation method. A sole tradership taxed at a flat rate or on revenue can produce different results from a company or Estonian CIT, which can defer taxation until profits are distributed for qualifying companies. The right solution depends on costs, investment plans and growth. This analysis is our starting point.
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The Tools We Use
Polish law offers lawful ways to reduce tax burdens. The key is choosing those suited to the business. We regularly advise on innovation incentives, including R&D and IP Box relief, as well as expansion relief for businesses increasing sales of their products.
For related groups and intra-group transactions, we provide comprehensive support with transfer pricing, while clients planning succession and asset protection can receive advice on family foundations — combining tax planning with transferring a business securely to the next generation. Each tool is explained on a dedicated page.
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Secure Implementation
A good tax strategy goes beyond an idea. It requires secure implementation and the ability to defend it during an audit. We support planned steps with documentation demonstrating their commercial rationale and use protective opinions for more complex matters. If a dispute arises, we assist during tax audits and subsequent proceedings.
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Part of Wider Business Support
Tax planning works best alongside ongoing tax and legal advice, because almost every business decision has tax implications, from contract terms to ownership structures. We therefore provide it as part of comprehensive legal support for businesses, combining lawyers’ and tax advisers’ perspectives in one team.
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Would You Like to Check Safely Whether Your Business Is Paying More Tax Than Necessary? Get in Touch. We will analyse your circumstances and propose lawful solutions suited to the scale and plans of your business.