Optimization activities – even if they lead to creating artificial structures only, cannot be regarded as abusing the law, if they constitute an actual application of the treaty freedoms (including the freedom of entrepreneurship).

Judgment of the European Court of Justice, Cadbury case (C-196/04, Cadbury Schweppes plc, Cadbury Schweppes Overseas Ltd vs Commissioners of Inland Revenue)

Bobiński Ciepierski Schwartz & Partnership Law Firm specializes in auditing the current tax burden of clients and, above all, finds solutions that optimize it effectively. The law firm employs and cooperates with specialists in Polish fiscal law and international legal and tax aspects, and forms of performing business transactions permitted by law. The term “tax optimization” means tax planning, that is selecting such a structure of a given transaction or corporate structure which is aimed at reducing tax burden, only within the limits of the binding legal regulations. Tax optimization must be clearly differentiated from tax evasion.

The condition for a full and effective tax optimization is the coordination of tax planning in all areas of the entrepreneurs’ business and obviously, it should be performed before making the planned transaction. This reservation does not apply to planning corporate structures (holding structures), as a rule.

Tax planning activities performed by the law firm include, e.g.:

  • merging companies,
  • investment purchases,
  • optimization of transfer pricing,
  • optimization in law of the European Union,
  • European company,

Bobiński Ciepierski Schwartz & Partnership Law Firm plans geographical events, so as to achieve the effect of reducing tax burden according to the client’s requests, thanks to the acquired knowledge about geographical events taxation in various countries worldwide. The activities undertaken by our law firm constitute a legal possibility to take advantage of an available legal instruments and have the nature of international tax planning.

REGISTRATION OF A COMPANY IN CYPRUS

We create corporate structures, considering e.g. tax residences in Cyprus and Luxembourg, in the process of tax optimization based on international solutions. We create all international tax structures based on exclusivity agreements concluded with a renowned Cypriot law firm, therefore, we are able to provide professional services and a high level of security to all entrepreneurs, who consider costs reduction to the extent permitted by law to be one of the conditions for achieving success on the market. Cyprus is obviously a strategic venue for international trade at the junction of European, African and Asian trade routes and due to the existence of the tax system, which is the most useful for tax planning objectives among the tax systems of all European Union member states.

The island’s very well developed infrastructure, legal system based on Anglo-Saxon law, high standard of specialist services, low maintenance costs, investment security, and numerous tax advantages make Cyprus an ideal business environment for entities operating in Poland and worldwide. Cyprus has the lowest income tax rate in the entire European Union (10%) and a tax system binding in Cyprus envisages several tax preferences, e.g. concerning the payment of dividends between the companies forming a holding structure. It must not be overlooked that taking advantage of a Cypriot company provides an opportunity to use the privileges resulting from 45 double taxation agreements concluded by Cyprus and tax reliefs envisaged in European Union directives. Our law firm often advises the practical use of Cypriot companies in tax planning, because a properly designed structure can reduce a tax burden concerning:

  • payments due to transfer of license rights made to a Cypriot company – with a properly designed structure one can avoid taxation due to withholding tax (or reduce its level) based on the regulations of the double taxation agreement,
  • payments of dividend within a group of companies, as a dividend paid by a foreign company to a Cypriot company is exempt from income tax in Cyprus, as a rule,
  • trade in securities, as income from this activity can be exempt from income tax,
  • income earned by natural persons due to performing functions in holding companies authorities.

Standard forms of corporate tax optimization:

  • tax optimization of international trade profit,
  • tax optimization of brokerage services profit,
  • tax optimization of e-commerce and remote services profit,
  • tax optimization of operating profit by allocating some sources of expenses outside Poland,
  • tax optimization of real property sale,
  • tax optimization of revenues from intangible assets,
  • tax optimization concerning tax on capital gains, including, e.g.
  • tax optimization of dividend,
  • tax optimization of stock exchange profit,
  • tax optimization of other capital investment on Polish market (e.g. sale of shares or stocks).