The international recognition of our clothing brands is growing. At the same time, we are constantly nurturing the Polish roots of our company and supporting the domestic economy by paying taxes here. This way, LPP has been contributing to the state budget for years.
Impact on the domestic economy
We strive to develop our company in a responsible manner on many levels. One of them indeed consists in taking care of the national economy and paying taxes to support it. In LPP, we find it natural because the company was established in Poland, it is here that we create designs of our brand collections and it is here that strategic decisions concerning the company are made. In Poland, we also have extensive structures responsible, among others, for distribution and IT.
Apart from paying taxes in Poland, LPP contributes to the development of the domestic economy also as an employer, providing jobs for over 13 thousand employees in Poland today (and over 24 thousand people worldwide). We also take care of good relations with the immediate environment, cooperating with universities and social organisations. In this way, we exert positive influence on the social and economic sphere of the country, including local communities.
LPP drives Polish export
One of the key branches of our activity, which allows us to support the Polish economy on a large scale, is export. LPP has been consistently implementing its global development strategy. In 2020 our brands were available on 39 markets – in European and Asian countries, as well as in the Middle East.
The value of our exports in 2019 exceeded PLN 5 bn. LPP also pays taxes and duties on exports in Poland, thus contributing hundreds of thousands of zlotys to the state budget. In this way, we directly contribute to the economic development of our country and, moreover, by increasing our presence on foreign markets, we promote Polish creative thought on the international arena. These are activities of which we are extremely proud.
We are one of the largest taxpayers in the country and the largest on the Polish coast
Thanks to our successful operations in Poland and abroad in 2019, we contributed over one billion zlotys to our domestic budget on account of various types of levies, and most of all, on account of taxes – LPP paid as much as PLN 134 m zlotys to the State budget on account of CIT alone.
We also ranked among the top 30 CIT payers for 2018 according to the list compiled by the Ministry of Finance. In addition to our position among the top leading companies operating in Poland, we rank first among companies operating on the Polish coast area. LPP is the largest company based in the Tri-City with tax settlement carried out in Poland.
TOP 10 largest CIT payers in Poland*
|Company business name||Tax in PLN||Income in PLN|
|Grupa Lotos SA||172 466 961||1 709 932 299|
|Lotos Asfalt||81 545 159||428 960 048|
|LPP SA||41 147 350||535 530 338|
|Lotos Paliwa||39 121 454||205 927 387|
|Europejski Fundusz Leasingowy SA||25 050 735||131 878 841|
|SKOK im. Franciszka Stefczyka||22 039 904||118 262 018|
|Oceanic SA||21 132 328||21 967 235|
|Federal-Mogul Bimet SA||19 672 047||103 537 087|
|STU Ergo Hestia Spółka Akcyjna||16 079 784||85 530 444|
|DCT Gdańsk SA||15 897 239||83 669 679|
*List of the Ministry of Finance – Top 30 CIT payers for 2018.
Taxes paid by LPP in recent years
The amount of taxes that LPP pays into the state budget is increasing year on year. In 2019, it exceeded one billion zlotys (to be precise, PLN 1,097,619,000), whereas four years earlier it was less than PLN 413 m.
The increase can also be seen in payments resulting from particular obligations or types of taxes paid. In 2015, LPP paid PLN 44.4 m in CIT, and for the sake of comparison, in 2019 – already over PLN 134 m. In 2015, however, we paid less than PLN 150 m to the state budget on account of customs duties, and four years later PLN 240 m, as a result of our products reaching more and more foreign markets. As the years passed, taxes were also increasingly paid in connection with real estate – in 2015, this amount was less than PLN 3 m, whereas in 2019 already over PLN 4.5 m.
LPP has a transparent tax policy. We fulfil our obligations towards the state in a reliable manner and every year we issue an official report which presents detailed information on the amounts paid to the state budget resulting from our activities both on the domestic market and worldwide.
SINCE 2015 WE HAVE PAID THE FOLLOWING AMOUNTS TO THE STATE BUDGET IN TOTAL:
|VAT||412 945||488 056||529 929||540 869||605 000|
|Corporate Income Tax – CIT||44 401||5 692||41 703||144 909||134 000|
|Customs duty||149 204||143 259||157 869||132 283||240 000|
|Personal Income Tax – PIT||16 871||14 256||18 994||20 275||24 000|
|ZUS employee||11 154||14 828||19 890||22 884||89 000|
|ZUS employer||15 779||21 068||27 866||32 932|
|Health insurance contributions||5 370||9 313||12 617||14 754|
|ZUS total||60 373||70 570|
|The State Fund for the Rehabilitation of the Disabled (PFRON)||118||345||590||696||944|
|Real estate tax||2 954||3 225||3 607||3 791||4 580|
|Tax on means of transport||3||3||3||3||4|
|Total [PLN thousand]||658 799||700 045||813 068||913 396||1 097 000|
Contribution to the economy: LPP vs. other companies in Poland
In LPP, we are perfectly aware of the responsibility which rests on Polish entrepreneurs in terms of contributing to their domestic economy, among other things, through the inflows to the state budget. We want to provide real support in this respect, also thanks to the growing importance of our company on foreign markets.
LPP was included in the list of the 30 largest CIT payers in Poland for 2018. The companies that are ahead of us in this ranking are primarily banks and companies that operate in the broadly understood financial sector. Among the representatives of the trade sector we are among the top companies that pay their taxes in Poland.
Staying true to our long-standing tradition is very important to us. Therefore, while developing our business, we also remember to settle LPP’s taxes in the country where our operations are concentrated, namely in Poland. The fact that we are ranked among the top CIT payers in the country makes us even more proud of our actions.