WE CONSTANTLY SUPPORT
THE POLISH ECONOMY
THROUGH OUR ACTIVITIES
0bn

PLN the amount we
contributed to the state
budget in 2021

0bn

PLN is the sum of
investments made in the
financial year 2021/22

LPP S.A.SUSTAINABLE DEVELOPMENTLPP’s contribution to the Polish economy – Taxes

LPP’S CONTRIBUTION TO THE ECONOMY - TAXES

The international recognition of our clothing brands is growing. At the same time, we continue to nurture
our company’s Polish roots and support the domestic economy by paying taxes here.
In this way we have been contributing to the national budget for years.

IMPACT ON THE DOMESTIC ECONOMY


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 that we create the collection designs for our brands and it is where that 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 15,163 people in Poland (and 31,808 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.

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 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.

WE ARE ONE OF THE LARGEST TAXPAYERS IN THE COUNTRY AND THE LARGEST ON THE POLISH COAST

Thanks to our successes in Poland and abroad, in 2021 we contributed more than PLN 1.5 billion to the Polish budget from various contributions, and above all from taxes – LPP paid more than PLN 360 million to the state from CIT alone.

We are included in the list of the Ministry of Finance top 30 CIT payers for 2018. In addition to our presence in the top on a national scale, we are also in the first position among companies operating on the Polish Coast. LPP is the largest private company based in the Tri-City that settles its taxes in Poland.

TAXES PAID BY LPP IN RECENT YEARS


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.

LPP has a transparent tax policy. We reliably fulfil our obligations to the state and every year we issue an official report that presents precise information on the amounts paid to the national budget resulting from our activity both on the domestic market and internationally.

SINCE 2016 WE HAVE PAID THE FOLLOWING AMOUNTS TO THE STATE BUDGET IN TOTAL 5,9 BN PLN

20162017201801.2019/
01.2020
02.2020/
01.2021
02.2021/
01.2022
VAT488,056529,929613,318604,754457,190761,231
Corporate Income Tax – CIT5,69241,703149,611107,89340,458360,180
CFC tax on foreign controlled entitiesn/a *n/a *10,59826,13850,94531,528
Tax on retail sales PSDn/a *n/a *n/a *n/a *n/a *38 024
Customs duty143,259157,869131,232239,961115,953202,426
Personal Income Tax – PIT14,25618,99420,27524,45919,65631,831
The State Fund for the Rehabilitation of the Disabled (PFRON)3455906969458805,022
ZUS total45,20960,37370,57088,92564,267153,603
Real estate tax3,2253,6073,7914,5784,9196,018
Tax on means of transport333422
Total [PLN thousand]700,045813,0681,000,0941,097,657754,2701,589,865

Figures for 2021 are forecast. Final figures will be provided in July 2022 after tax returns are filed.
Data for 2018. 2019 and 2020 have been adjusted to the tax return amounts.
n/a * – The CFC tax was introduced from 2018.
The PSD tax was introduced from 2021.

CONTRIBUTION TO THE ECONOMY:
LPP VS. OTHER COMPANIES IN POLAND

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.

PREVIOUS TAX YEARS - DETAILED DATA

LPP SA - Odpowiedzialność - Pobierz Raport CSR

The full report for 2021/22 can be found here:

Download the report