LPP’S CONTRIBUTION TO THE ECONOMY - TAXES

We strive to develop our company in a responsible manner on many levels. One of them is caring for the national economy and paying taxes to support it.

It is obvious to us, because the company was established in Poland, it is where we create the collection designs for our brands and it is where the strategic decisions concerning the company are made. In Poland we also have well-developed structures responsible for such things as distribution and IT.

Apart from paying taxes in Poland, LPP also contributes to the development of the domestic economy as an employer, currently employing over 15,000 people in Poland (and more than 24,000 people worldwide). We also care for good relations with the environment, cooperating with universities and social organisations. In this way we gain a 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 2021 our brands were already available on 39 markets – countries in Europe and Asia as well as the Middle East.

The value of our exports in 2021 amounted to over PLN 8.5 billion. LPP also pays taxes and duties on exports in Poland, thanks to which we contribute hundreds of thousands of PLN 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 level. We are incredibly proud of these activities.

The sum of taxes that LPP paid to the state budget increased year on year until 2019, due to the outbreak of the pandemic and a significant reduction in revenue, it decreased in 2020. In 2021, it exceeded PLN 1.5 billion (it was exactly PLN 1,589,865,000 – data before the tax return was filed).

In previous years, there were also visible increases in payments resulting from particular obligations or types of taxes paid. In 2017, LPP paid PLN 41.7 million of CIT, and by comparison in 2021 – over PLN 360 million. We paid almost PLN 158 million to the state budget from customs duties in 2017 and over PLN 202 million four years later. This growth is due to the fact that we are expanding into more and more foreign markets with our products. Over the years, LPP has also paid more and more taxes in relation to real estate – in 2017 this amount was about PLN 3.6 million and in 2019 over PLN 6 million.

At LPP we understand perfectly well how great a responsibility Polish entrepreneurs have to contribute to the domestic economy, for example through the revenue we contribute to the state budget. We want to really support it, which we do thanks to the growing importance of our company also on foreign markets.

LPP was included in the list of the 30 largest CIT payers in Poland for 2019. The companies ahead of us in this ranking are mainly banks and companies that operate in the broadly defined financial industry. Among representatives of the commercial sector, we are in the top group of companies that pay their taxes in Poland.

Being true to a long-standing tradition is very important to us. Therefore, while developing our activities we remember to settle the taxes of LPP in the country where our activity is centred, i.e. in Poland. The awareness that we belong to the largest CIT payers in the country makes us even more proud of our operations.