Fiscal year 2019

Year after year, an increase in our tax revenues has been observed. This is a result of, among other things, the Company’s long-term development strategy not only in Poland, but also internationally. Despite the increasing recognition of our brands on foreign markets, LPP pays taxes in Poland.

In 2019, we devoted a lot of energy to expanding our sales network – not only the traditional one, but also the online one. We made our debut with our stores on two new markets and now our products are available in 38 countries, both stationary and online.

In the countries where our collections are available, we observe increasing competition as well as growing customer expectations. We are very pleased that despite the dynamic changes on the market, our brands generate revenue which translates into a concrete contribution to the Polish economy. By paying taxes in our country, LPP supports it in real terms.

Below we present a summary of data showing the individual inflows to the state budget on our part. The table shows the amounts relating to the 2019 financial year (calculated from 01.2019 to 01.2020).

Taxes paid to the state budget in 2019

Fiscal year01.2019/ 01.2020
VAT604 754
Corporate Income Tax – CIT133 994
Customs duty239 961
Personal Income Tax – PIT24 459
ZUS employee
ZUS employer
Health insurance contributions
ZUS total88 925
The State Fund for the Rehabilitation of the Disabled (PFRON)944
Real estate tax4 578
Tax on means of transport4
Total [PLN thousand]1 097 619

Data analysis

In the 2019 fiscal year (calculated until January 2020), as regards the amount of various levies and, most of all, taxes LPP contributed to the state budget over PLN 1 bn (PLN 1,097,619 th). This is a record result in the history of the company.

The largest item is VAT, under which we paid PLN 605 m. Our CIT amounted to almost PLN 134 m, and almost PLN 240 m was transferred from our company to the state budget in customs duties. Another important item is the Employee Social Security Contributions [ZUS], to which we have allocated almost PLN 89 m. LPP paid the property tax in the amount of over PLN 4.5 m.

Taxes paid to the state budget in 2019 (in PLN thousand)

Chart - Taxes paid to the state budget in 2019 (in PLN thousand)

Fiscal year 2018

The 2018 fiscal year is another year in a row in which our contributions to the state budget exceeded the previous year’s figures – this time by over PLN 100,000 th. We are proud to support our national economy on an increasing scale.

The growing contribution to the national budget is possible, among other things, thanks to the ever increasing recognition of our brands abroad. The business model, in which we promote Polish know-how by, among other things, selling collections designed in Poland also outside Poland, has been working out well. It is thanks to exports and payment of taxes in Poland, among other things, that LPP contributes to Polish economic growth.

Below we present data that show our contribution to the state budget in 2018. The table below shows the total amount, but also the amount of revenue arising from individual obligations.

Taxes paid to the state budget in 2018

Fiscal year2018
VAT540 869
Corporate Income Tax – CIT144 909
Customs duty132 283
Personal Income Tax – PIT20 275
ZUS employee22 884
ZUS employer32 932
Health insurance contributions14 754
ZUS total70 570
The State Fund for the Rehabilitation of the Disabled (PFRON)696
Real estate tax3 791
Tax on means of transport3
Total [PLN thousand]913 396

Data analysis

In the 2018 fiscal year, we paid a total of over PLN 913 m into the state budget on account of various levies and taxes. As regards CIT alone, LPP paid over PLN 145 m. Thanks to this amount, we were recognised among the top 30 taxpayers of this tax in the list of the Ministry of Finance. Over PLN 541 m was contributed as VAT and over PLN 132 m as customs duties.

Taxes relating to employment, such as employee’s and employer’s social security contributions and health care contributions were also a significant item – they totalled PLN 71 m. This is over PLN 10 m more than a year before, because in 2017, in connection with these obligations, the Company paid over PLN 60 m to the state budget.

Taxes paid to the state budget in 2018 (in PLN thousand)

Chart - Taxes paid to the state budget in 2018 (in PLN thousand)

Fiscal year 2017

Although we are increasingly active on international markets and our brands are increasingly recognisable there, we do not forget our roots. Throughout this time it has been Poland where all the key decisions are made, and it is here that our clothes and accessories are designed. So it is obvious to us that LPP pays taxes in Poland.

In 2017, thanks to the taxes LPP once again contributed to the state budget. And this time the total amount of the amounts paid exceeded last year’s figures. As a Polish family business, we are extremely proud of this.

We are glad that along with the development of our Company, we are also contributing indirectly to the development of our country thanks to the payment of various levies and taxes to its budget. LPP wants to continue this progress and further support the Polish economy.

The table below shows our 2017 fiscal year. It contains detailed data relating to the amounts of individual obligations.

Taxes paid to the state budget in 2017

Fiscal year2017
VAT529 929
Corporate Income Tax – CIT41 703
Customs duty157 869
Personal Income Tax – PIT18 994
ZUS employee19 890
ZUS employer27 866
Health insurance contributions12 617
ZUS total60 373
The State Fund for the Rehabilitation of the Disabled (PFRON)590
Real estate tax3 607
Tax on means of transport3
Total [PLN thousand]813 068

Data analysis

In 2017, in connection with obligations arising from various levies and taxes, LPP paid a total of PLN 813 m to the state budget. This amount consisted mostly of VAT, for which we paid nearly PLN 530 m. The second largest item was customs duty, which amounted to over PLN 158 m.

ZUS (contributions to the social insurance institution) and CIT paid by LPP in 2017 also constituted significant items in this respect. LPP allocated over PLN 60 m and over PLN 42 m in respect of the above. However, we paid nearly PLN 19 m in PIT, and over PLN 3.6 m in property tax.

Taxes paid to the state budget in 2017 (in PLN thousand)

Chart - Taxes paid to the state budget in 2017 (in PLN thousand)

Fiscal year 2016

In 2016, the total amount of taxes paid in Poland by LPP exceeded the result obtained in 2015. This was possible, among other things, thanks to the consistent development of the company not only domestically, but also on international markets.

The business model assuming the sale of clothes, accessories or other products that have been created on the basis of Polish know-how, also outside the country, allows us to grow in strength. Our growth, achieved, among other things, thanks to export, while paying taxes in Poland at the same time, translates into real support for the national economy.

We are planning to continue such a strategy and, consequently, we want to support the national budget on an even greater scale in the years to come, and to provide it with even greater amounts.

The table below shows taxes paid by LPP in 2016. The breakdown into the amounts resulting from individual obligations indicates specific sums which make up the total result.

Taxes paid to the state budget in 2016

Fiscal year2016
VAT488 056
Corporate Income Tax – CIT5 692
Customs duty143 259
Personal Income Tax – PIT14 256
ZUS employee14 828
ZUS employer21 068
Health insurance contributions9 313
ZUS total
The State Fund for the Rehabilitation of the Disabled (PFRON)345
Real estate tax3 225
Tax on means of transport3
Total [PLN thousand]700 045

Data analysis

In 2016, the state budget was credited with a total of more than PLN 700 m as various levies and taxes. The largest item on the list that contributed to this result was VAT amounting to over PLN 488 m. In connection with our international activities, however, we paid to the Polish state budget over PLN 143 m in customs duties.

The total amount of taxes paid by LPP in 2016 also comprised, among other things, ZUS contributions from employees and the employer, as well as health insurance contributions, which amounted to over PLN 45 m in total.

Taxes paid to the state budget in 2016 (in PLN thousand)

Chart - Taxes paid to the state budget in 2016 (in PLN thousand)

Fiscal year 2015

In 2015, the sum of taxes paid by LPP in Poland exceeded PLN 658 m. Such a result was possible thanks to the efforts and commitment that we put into the development of the company not only in Poland, but also abroad.

In 2015, LPP launched its operations on new foreign markets. We started selling our products in Egypt and Qatar, among others. Such activities translated into the Company’s overall growth, which, in turn, contributed to the payment of higher taxes in Poland. Owing to that, LPP has provided a real support to the domestic economy.

We are committed to continuous development and do not plan to slow down. Our further growth will allow the taxes paid by LPP to the Polish state budget even higher in the coming years.

The table below shows the amount of taxes paid by LPP in Poland in 2015. It lists the individual types of tax obligations of our Company. All taxes have been aggregated to show the total contribution of LPP to the state budget in that period.

Taxes paid to the state budget in 2015

Fiscal year2015
VAT412 945
Corporate Income Tax – CIT44 401
Customs duty149 204
Personal Income Tax – PIT16 871
ZUS employee11 154
ZUS employer15 779
Health insurance contributions5 370
ZUS total
The State Fund for the Rehabilitation of the Disabled (PFRON)118
Real estate tax2 954
Tax on means of transport3
Total [PLN thousand]658 799

Data analysis

In 2015, the total amount of taxes LPP paid in Poland exceeded PLN 658 m. This amount consisted of various levies and taxes. The highest amount was paid to the budget on account of VAT, which amounted to over PLN 412 m. Customs duty related to the growing export of goods to foreign markets amounted to nearly PLN 150 m. CIT, in turn, paid by LPP in 2015 amounted to PLN 44 m.

Our obligations in respect of the state budget are not only taxes, but also contributions from employees and the employer, i.e. ZUS (Social Insurance Institution contributions). They result, among other things, from the increase in employment in LPP. The total amount of all ZUS contributions in 2015 exceeded PLN 32 m.

Taxes paid to the state budget in 2015 (in PLN thousand)

Chart - Taxes paid to the state budget in 2015 (in PLN thousand)