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.
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.
Thanks to our successful operations in Poland and abroad in 2020, 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 largestprivate company based in the Tri-City with tax settlement carried out in Poland.
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.
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.
|VAT||488 056||529 929||613 318||604 754||457 190|
|Corporate Income Tax – CIT||5 692||41 703||149 611||107 893||40 458|
|Customs duty||143 259||157 869||131 232||239 961||115 953|
|Personal Income Tax – PIT||14 256||18 994||20 275||24 459||19 656|
|ZUS total||45 209||60 373||70 570||88 925||64 267|
|The State Fund for the Rehabilitation of the Disabled PFRON||345||590||696||945||880|
|Real estate tax||3 225||3 607||3 791||4 578||4 919|
|Tax on means of transport||3||3||3||4||2|
|Total [PLN thousand]||700 045||813 068||989 496||1 071 519||703 325|
The figures for 2020 are projections. The final figures will be provided in July 2021 after the tax return has been filed.
Data for 2018 and 2019 have been adjusted to the tax return amounts.
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.