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

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)

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

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)

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

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)

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

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)