When a shareholder invoices his company

When a shareholder invoices his company

[Shareholder invoices his company] Providing services by a board member or a shareholder to a company under a B2B agreement is a hot topic due to the recent change in the tax authority’s approach to qualifying such agreements. Tax authorities have recently taken the stance that this way of forming cooperation may be considered artificial due to the extraction of certain services from the company’s scope of activity and their transfer to the taxpayer’s business activity. Consequently, they negate the possibility of (favorably) settling this type of service within the scope of business activity and impose the obligation to settle income from this source as part of employment within the company. Therefore, is invoicing one’s own company possible?

When shareholder invoices his company

W Rzeczpospolitej recently published an article on this topic, with expert commentary from Piotr Sekulski, PhD. In the context of the negative tax consequences of the tax authorities’ change in approach, he noted that:

tax advisor Piotr Sekulski, PhD

“A well-earning partner who is employed by a company will pay a 32% PIT tax rate. However, in their own company, they can pay a 19% linear PIT on income or a low flat tax on revenue, e.g., 8.5% for intermediation in acquiring clients or training services. The difference is significant, and moreover, with the flat tax, there is a chance for a lower health insurance contribution.”

The entire article is available here.

How can we help?

We’ve previously written about the change in the tax authorities’ approach to providing services to a company by partners.

If after reading the article you have questions or doubts regarding the situation when shareholder invoices his company! Describe your situation in detail and any concerns you may have. We’ll analyze your case and, during individual consultations, clarify any questions or doubts, as well as discuss the possibility of reducing tax risks.

If you have any questions regarding the topic, visit www.outsourced.pl.

About dr Piotr Sekulski

My name is Piotr Sekulski. I am a Polish tax advisor no. 13740, Doctor of Law from the Jagiellonian University and founder of Outsourced.pl. I specialize in tax advisory for the IT sector, shareholders, startup founders, technology companies, B2B contractors and internationally mobile individuals. I support clients in matters concerning lump-sum taxation, PIT, CIT, WHT, Polish tax residency, RSU/ESOP taxation, R&D relief, IP Box and 50% tax-deductible costs. I gained professional experience in reputable tax advisory firms and, as a tax advisor, have participated in several hundred tax projects for the IT, new technologies and creative sectors.

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