Tax strategy

Pursuant to Article 27c of the Corporate Income Tax Act of 15 February 1992, Lubelski Węgiel “Bogdanka" S.A. (“Company”) is obligated to draw up and publish information on the implementation of its Tax Strategy for the respective fiscal years.

In order to duly perform the above obligation, the taxpayer must have appropriate internal regulations in place to ensure compliance with legal requirements and appropriate tools for efficient and conscious management of tax processes in Poland. Therefore, in order to properly comply with the above obligation, the Company has developed and implemented appropriate procedures and regulations for internal processes, including in particular the Tax Strategy of Lubelski Węgiel “Bogdanka” S.A.

The Tax Strategy of Lubelski Węgiel „Bogdanka” S.A. sets forth the procedures for the individual tax areas.

The main tax procedures implemented to manage tax risk in the Company are the procedures in relation to:

  • corporate income tax
  • real estate tax
  • personal income tax
  • goods and services tax (VAT)
  • excise tax
  • tax on means of transportation
  • tax on civil law acts
  • agricultural property tax
  • forest tax

Moreover, the Company has implemented detailed procedures governing the principles of conduct in areas that require detailed analysis, i.e. in relation to:

  • systemic exemptions in corporate income tax
  • tax schemes
  • transfer prices
  • fixed assets
  • withholding tax
  • tax inspections, customs tax inspections and tax proceedings
  • requests for general and individual interpretations of tax law
  • identification of the place of taxation for the purposes of the goods and services tax (VAT)
  • exercise of due diligence in VAT and in foreign payments to ensure proper settlement of the withholding tax