LPP’S CONTRIBUTION TO THE ECONOMY - TAXES

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 27 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.

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 38 markets – in European and Asian countries, as well as in the Middle East.

The value of our exports in 2020 exceeded PLN 4,5 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.

The total amount of taxes paid by LPP to the state budget increased year on year until 2019. Due to the outbreak of the pandemic and a significant reduction in proceeds, it decreased in 2020. In 2020, it exceeded PLN 700 million (PLN 703,325 to be precise – data before filing the tax return).

In previous years, increases were also visible in payments resulting from individual obligations or types of taxes paid. In 2017, LPP paid PLN 41.7 million in CIT, and by comparison in 2019 – already over PLN 108 million. On the other hand, we paid almost PLN 158 million in customs duties in 2017 and almost PLN 240 million two years later. This growth is due to the fact that we have been establishing our presence and product offer in more and more foreign markets. Over the years, LPP has also paid more and more taxes in connection with real estate – in 2017 this amount was about PLN 3.6 million, while in 2019 it was already over PLN 4.5 million.

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.