Fiscal year 2021/22

Due to the ongoing pandemic, the past year was associated with a significant economic slowdown in Poland and in the world. It was caused, inter alia, by the introduced restrictions, which largely affected the service and trade industry. Nevertheless, our family company from Gdańsk made every effort to end this year with a good result and guarantee stable employment for its employees.

Appropriate business decisions, flexibility as well as quick and skilful adaptation to changing and, above all, difficult economic conditions allowed us to continue to successfully implement the development strategy of LPP. All this translated into our profits, and thus into a significant amount of taxes, which we transferred to the state budget. LPP is a Polish clothing company in which, despite continuous expansion and dynamic development, we remember our roots – that’s why we pay taxes in Poland.

The table below presents information on what taxes LPP paid to the Polish budget for 2021/22. It includes not only the total amount of LPP taxes – the whole has been divided in a transparent and legible way so that everyone can see the details about the amount of our individual liabilities.

The table takes into account the amounts relating to the 2021/22 financial year, i.e. for the period from 02.2021 to 01.2022.

TAXES PAID TO THE STATE BUDGET IN 2021/22

Fiscal year 02.2021/ 01.2022
VAT 761,231
Corporate Income Tax – CIT 360,180
CFC tax on foreign controlled entities 31,528
Tax on retail sales PSD 38,024
Customs duty 202,426
Personal Income Tax – PIT 31,831
The State Fund for the Rehabilitation of the Disabled (PFRON) 5,022
ZUS total 153,603
Real estate tax 6,018
Tax on means of transport 2
Total [PLN thousand] 1,589,865

Data for 2021 are forecast. Final figures will be announced in July 2022 after filing the tax return.

Data analysis

The total amount of LPP tax revenues to the Polish budget in the accounting year 2021/22 amounted to over PLN 1.5 billion. This amount consists of various types of taxes and levies and any other liabilities that we have transferred to the national budget.

The VAT tax paid by LPP was the highest liability for this period and amounted to over PLN 761 million. Another important component of all revenues from our family clothing company to the state budget was the CIT tax, which exceeded PLN 360 million, and the customs duty, which amounted to over PLN 202 million.

In the described tax period, LPP also provided the state treasury with over PLN 5 million as part of ZUS contributions. The CFC tax exceeded PLN 31 million, and the PSD retail sales tax was over PLN 38 million.

LPP also paid large sums to the state treasury due to personal income tax (PIT – over PLN 31 million) and property taxes (over PLN 6 million).

Taxes paid to the state budget in 2021/22 (in PLN thousand)

Fiscal year 2020/21

The economic situation worldwide has deteriorated significantly due to the prevailing pandemic. Nevertheless, our family business from Gdańsk did its best to end the past year with a high tax contribution to the state budget. Although our brands are now recognised in many countries around the world, LPP is a Polish clothing company and hence we pay our taxes in Poland.

Despite the pandemic, we ended 2020/21 with results that allowed us to make a high tax contribution to the state budget. LPP made this happen by, among other things, responding quickly to global economic changes and meticulously implementing the company’s growth strategy.

The table below presents LPP’s taxes for 2020/21. Not only is the total amount of the company’s taxes included – the total is broken down to clearly indicate the amount of proceeds from specific liabilities.

The table takes into account the amounts relating to the 2020/21 financial year, i.e. for the period from 02.2020 to 01.2021.

TAXES PAID TO THE STATE BUDGET IN 2020/21

Fiscal year 02.2020/ 01.2021
VAT 457,190
Corporate Income Tax – CIT 40,458
CFC tax on foreign controlled entities 50,945
Tax on retail sales PSD N/A
Customs duty 115,953
Personal Income Tax – PIT 19,656
The State Fund for the Rehabilitation of the Disabled (PFRON) 880
ZUS total 64,267
Real estate tax 4,919
Tax on means of transport 2
Total [PLN thousand] 754,270

The figures for 2020 are projections. The final figures will be provided in July 2021 after the tax return has been filed.

DATA ANALYSIS

The contribution of LPP made to the state budget in 2020/21 exceeded a total of PLN 754 million. This amount consisted of various liabilities and levies, as well as taxes. LPP paid as much as PLN 457 million in VAT – the highest amount among all the company’s tax liabilities for the period analysed.

On account of other liabilities, LPP’s taxes also remained at a very high level. Last year, the company paid over PLN 64 million to the state treasury in social security contributions, and CIT exceeded PLN 40 million. Customs duty related to the international operations of the Gdańsk-based company, on the other hand, amounted to nearly PLN 116 million, and the company’s real estate tax to almost PLN 5 million.

TAXES PAID TO THE STATE BUDGET IN 2020/21 (IN PLN THOUSAND)

Taxes paid by LPP SA in 2020 - VAT, CIT, CFC, PSD, Customs, PIT, PFRON, ZUS, real estate, means of transport

Fiscal year 2019

Year after year, an increase in our tax revenues has been observed. This is a result of, among other things, the Company’s long-term development strategy not only in Poland, but also internationally. Despite the increasing recognition of our brands on foreign markets, LPP pays taxes in Poland.

In 2019, we devoted a lot of energy to expanding our sales network – not only the traditional one, but also the online one. We made our debut with our stores on two new markets and now our products are available in 38 countries, both stationary and online.

In the countries where our collections are available, we observe increasing competition as well as growing customer expectations. We are very pleased that despite the dynamic changes on the market, our brands generate revenue which translates into a concrete contribution to the Polish economy. By paying taxes in our country, LPP supports it in real terms.

Below we present a summary of data showing the individual inflows to the state budget on our part. The table shows the amounts relating to the 2019 financial year (calculated from 01.2019 to 01.2020).

Taxes paid to the state budget in 2019

Fiscal year 01.2019/01.2020
VAT 604,754
Corporate Income Tax – CIT 107,893
CFC tax on foreign controlled entities 26,138
Tax on retail sales PSD N/A
Customs duty 239,961
Personal Income Tax – PIT 24,459
The State Fund for the Rehabilitation of the Disabled (PFRON) 945
ZUS total 88,925
Real estate tax 4,578
Tax on means of transport 4
Total [PLN thousand] 1,097,657

Data analysis

In the 2019 fiscal year (calculated until January 2020), as regards the amount of various levies and, most of all, taxes LPP contributed to the state budget over PLN 1 bn (PLN 1,097,657 th). This is a record result in the history of the company.

The largest item is VAT, under which we paid PLN 605 m. Our CIT amounted to almost PLN 107 m, and almost PLN 240 m was transferred from our company to the state budget in customs duties. Another important item is the Employee Social Security Contributions [ZUS], to which we have allocated almost PLN 89 m. LPP paid the property tax in the amount of over PLN 4.5 m.

Taxes paid to the state budget in 2019 (in PLN thousand)

Taxes paid by LPP SA in 2019 - VAT, CIT, CFC, PSD, Customs, PIT, PFRON, ZUS, real estate, means of transport

Fiscal year 2018

The 2018 fiscal year is another year in a row in which our contributions to the state budget exceeded the previous year’s figures – this time by over PLN 100,000 th. We are proud to support our national economy on an increasing scale.

The growing contribution to the national budget is possible, among other things, thanks to the ever increasing recognition of our brands abroad. The business model, in which we promote Polish know-how by, among other things, selling collections designed in Poland also outside Poland, has been working out well. It is thanks to exports and payment of taxes in Poland, among other things, that LPP contributes to Polish economic growth.

Below we present data that show our contribution to the state budget in 2018. The table below shows the total amount, but also the amount of revenue arising from individual obligations.

Taxes paid to the state budget in 2018

Fiscal year 2018
VAT 613,318
Corporate Income Tax – CIT 149,611
CFC tax on foreign controlled entities 10,598
Tax on retail sales PSD N/A
Customs duty 131,232
Personal Income Tax – PIT 20,275
The State Fund for the Rehabilitation of the Disabled (PFRON) 696
ZUS total 70,570
Real estate tax 3,791
Tax on means of transport 3
Total [PLN thousand] 1,000,094

Data analysis

In the 2018 fiscal year, we paid a total of over PLN 1 bn (PLN 1,000,094 th) into the state budget on account of various levies and taxes. As regards CIT alone, LPP paid over PLN 149 m. Thanks to this amount, we were recognised among the top 30 taxpayers of this tax in the list of the Ministry of Finance. Over PLN 613 m was contributed as VAT and over PLN 131 m as customs duties.

Taxes relating to employment, such as employee’s and employer’s social security contributions and health care contributions were also a significant item – they totalled PLN 70 m. This is over PLN 10 m more than a year before, because in 2017, in connection with these obligations, the Company paid over PLN 60 m to the state budget.

Taxes paid to the state budget in 2018 (in PLN thousand)

Taxes paid by LPP SA in 2018 - VAT, CIT, CFC, PSD, Customs, PIT, PFRON, ZUS, real estate, means of transport

Fiscal year 2017

Although we are increasingly active on international markets and our brands are increasingly recognisable there, we do not forget our roots. Throughout this time it has been Poland where all the key decisions are made, and it is here that our clothes and accessories are designed. So it is obvious to us that LPP pays taxes in Poland.

In 2017, thanks to the taxes LPP once again contributed to the state budget. And this time the total amount of the amounts paid exceeded last year’s figures. As a Polish family business, we are extremely proud of this.

We are glad that along with the development of our Company, we are also contributing indirectly to the development of our country thanks to the payment of various levies and taxes to its budget. LPP wants to continue this progress and further support the Polish economy.

The table below shows our 2017 fiscal year. It contains detailed data relating to the amounts of individual obligations.

Taxes paid to the state budget in 2017

Fiscal year 2017
VAT 529,929
Corporate Income Tax – CIT 41,703
CFC tax on foreign controlled entities N/A
Tax on retail sales PSD N/A
Customs duty 157,869
Personal Income Tax – PIT 18,994
The State Fund for the Rehabilitation of the Disabled (PFRON) 590
ZUS total 60,373
Real estate tax 3,607
Tax on means of transport 3
Total [PLN thousand] 813,068

Data analysis

In 2017, in connection with obligations arising from various levies and taxes, LPP paid a total of PLN 813 m to the state budget. This amount consisted mostly of VAT, for which we paid nearly PLN 530 m. The second largest item was customs duty, which amounted to over PLN 157 m.

ZUS (contributions to the social insurance institution) and CIT paid by LPP in 2017 also constituted significant items in this respect. LPP allocated over PLN 60 m and over PLN 41 m in respect of the above. However, we paid nearly PLN 19 m in PIT, and over PLN 3.6 m in property tax.

Taxes paid to the state budget in 2017 (in PLN thousand)

Taxes paid by LPP SA in 2017 - VAT, CIT, CFC, PSD, Customs, PIT, PFRON, ZUS, real estate, means of transport

Fiscal year 2016

In 2016, the total amount of taxes paid in Poland by LPP exceeded the result obtained in 2015. This was possible, among other things, thanks to the consistent development of the company not only domestically, but also on international markets.

The business model assuming the sale of clothes, accessories or other products that have been created on the basis of Polish know-how, also outside the country, allows us to grow in strength. Our growth, achieved, among other things, thanks to export, while paying taxes in Poland at the same time, translates into real support for the national economy.

We are planning to continue such a strategy and, consequently, we want to support the national budget on an even greater scale in the years to come, and to provide it with even greater amounts.

The table below shows taxes paid by LPP in 2016. The breakdown into the amounts resulting from individual obligations indicates specific sums which make up the total result.

Taxes paid to the state budget in 2016

Fiscal year 2016
VAT 488,056
Corporate Income Tax – CIT 5,692
CFC tax on foreign controlled entities N/A
Tax on retail sales PSD N/A
Customs duty 143,259
Personal Income Tax – PIT 14,256
The State Fund for the Rehabilitation of the Disabled (PFRON) 345
ZUS total 45,209
Real estate tax 3,225
Tax on means of transport 3
Total [PLN thousand] 700,045

Data analysis

In 2016, the state budget was credited with a total of more than PLN 700 m as various levies and taxes. The largest item on the list that contributed to this result was VAT amounting to over PLN 488 m. In connection with our international activities, however, we paid to the Polish state budget over PLN 143 m in customs duties.

The total amount of taxes paid by LPP in 2016 also comprised, among other things, ZUS contributions from employees and the employer, as well as health insurance contributions, which amounted to over PLN 45 m in total.

Taxes paid to the state budget in 2016 (in PLN thousand)

Taxes paid by LPP SA in 2016 - VAT, CIT, CFC, PSD, Customs, PIT, PFRON, ZUS, real estate, means of transport

Fiscal year 2015

In 2015, the sum of taxes paid by LPP in Poland exceeded PLN 658 m. Such a result was possible thanks to the efforts and commitment that we put into the development of the company not only in Poland, but also abroad.

In 2015, LPP launched its operations on new foreign markets. We started selling our products in Egypt and Qatar, among others. Such activities translated into the Company’s overall growth, which, in turn, contributed to the payment of higher taxes in Poland. Owing to that, LPP has provided a real support to the domestic economy.

We are committed to continuous development and do not plan to slow down. Our further growth will allow the taxes paid by LPP to the Polish state budget even higher in the coming years.

The table below shows the amount of taxes paid by LPP in Poland in 2015. It lists the individual types of tax obligations of our Company. All taxes have been aggregated to show the total contribution of LPP to the state budget in that period.

Taxes paid to the state budget in 2015

Fiscal year 2015
VAT 412,945
Corporate Income Tax – CIT 44,401
CFC tax on foreign controlled entities N/A
Tax on retail sales PSD N/A
Customs duty 149,204
Personal Income Tax – PIT 16,871
The State Fund for the Rehabilitation of the Disabled (PFRON) 118
ZUS total 32,303
Real estate tax 2,954
Tax on means of transport 3
Total [PLN thousand] 658,799

Data analysis

In 2015, the total amount of taxes LPP paid in Poland exceeded PLN 658 m. This amount consisted of various levies and taxes. The highest amount was paid to the budget on account of VAT, which amounted to over PLN 412 m. Customs duty related to the growing export of goods to foreign markets amounted to nearly PLN 150 m. CIT, in turn, paid by LPP in 2015 amounted to PLN 44 m.

Our obligations in respect of the state budget are not only taxes, but also contributions from employees and the employer, i.e. ZUS (Social Insurance Institution contributions). They result, among other things, from the increase in employment in LPP. The total amount of all ZUS contributions in 2015 exceeded PLN 32 m.

Taxes paid to the state budget in 2015 (in PLN thousand)

Taxes paid by LPP SA in 2015 - VAT, CIT, CFC, PSD, Customs, PIT, PFRON, ZUS, real estate, means of transport