Commercial representation in 2016

2016 saw a big change in terms of company representation regulations. The Ministry of Finance provided amendments to the Tax Ordinance Act regulating the rules of granting powers of attorney. The Ministry created Central Register of General Powers of Attorney. The Head of Tax Office in Wieluń was presented the task of managing the register.

A power of attorney is a very useful document for any business owner. It is an authorisation for a person of our choice to act on our behalf. The attorney with such authorisation becomes our official representative. He or she may represent the company for example before tax officials or courts.

A company plenipotentiary may reply on our behalf to summonses from tax offices or fiscal control offices. Knowledge of local rules of law is indispensable in such situation. Hiring an attorney may also be useful if we plan on setting up a subsidiary in Poland, enter negotiations, hire personnel, or deal with clients on a wide range of issues.

Although not long ago a general power of attorney could have any form, provided it was granted in writing, the Ministry of Finance decided to specify the rules that should be followed in order to officially hire someone as our representative in tax proceedings. Tax regulations state that a party to tax proceedings may act through a plenipotentiary, unless legal provisions state otherwise.

From July 2016, powers of attorney are granted through Portal Podatkowy (Tax Portal) available online, by submitting an applicable electronic document. The party intending to authorize someone to act as their plenipotentiary needs to fill in and submit the OPP-1 form.

The Central Register of Powers of Attorney will enable tax officials to verify whether a given person is entitled to represent the party to tax proceedings. The new procedure is to make granting and verifying powers of attorney easier and quicker.

What This Means for Businesses in Poland

Tax policy changes in Poland have direct implications for both domestic and foreign-owned businesses. Companies operating in Poland must stay informed about regulatory developments to optimize their tax position and maintain compliance. The Polish tax system includes CIT (19% standard, 9% for small taxpayers), VAT (23% standard rate with reduced rates of 8% and 5%), and various sector-specific levies.

For international entrepreneurs and investors, understanding the Polish tax landscape is essential for business planning. Poland offers several attractive incentives including the Polish Investment Zone (up to 15 years of CIT exemption), R&D tax relief (up to 200% deduction), and the IP Box regime (5% effective CIT rate on qualified intellectual property income). Professional tax advisory can help identify the most beneficial structure for your specific situation.

The interplay between Polish domestic tax law and international tax treaties is particularly important for foreign-owned entities. Transfer pricing regulations, withholding tax provisions, and anti-avoidance rules (GAAR) require careful navigation to ensure both compliance and optimization.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our tax advisory services in Poland, or contact us for a free consultation.