Industry focus as a key to effective service structure
PwC is the only tax consultancy practice operating in the Polish market that for over 10 years bases its service structure on industry specialisation.
The industry teams have been developed to help national and multinational companies from specific sectors to add their competitive advantage through reduction of tax related costs and improvement of financial results and shareholder value.
Pharmaceuticals - our offer
Currently, Tax Department of PricewaterhouseCoopers is the only consultancy firm in Poland offering for over 10 years specialised tax and legal services designed specifically for pharmaceutical and healthcare sector apart from standard tax advisory services rendered in favour of various types of businesses operated by our clients.
Our tax department commenced provision of services to pharmaceutical companies in Poland starting from the very first stage of their local operations in 1991. Since that time PwC has been actively advising them on their recurring tax issues as well as on structuring their activities in Poland. Thus, we acquired specific industry specialisation and expertise on advising pharmaceutical firms practically at every stage of their operation in Poland starting from non-trading branch offices up to the set up of a trading or manufacturing companies in Poland.
PwC has also assisted its clients in tax effective structuring of particular transactions including not only those regarding regular business activity (eg. various forms of consignment contracts for supplies of pharmaceuticals into Poland, contracts for undertaking clinical trials) but also significant projects involving reorganisation of existing business vehicles (eg. transfer of businesses from branch offices to legal entities, mergers and acquisitions, privatisation process, etc.).
The Pharmaceutical Team has co-operated with its clients, amongst others, in the following areas:
- Transfer Pricing reviews and structuring: We have offered pharmaceuticals companies our assistance with respect to:
- identification of the main areas of exposure to the tax authorities charging the Client with using prices different from the market value;
- co-ordination and consultancy on creating a written analysis of the Client's functions and business risk;
- recommendations with respect to proper valuation of the main product flows, services and intangible assets;
- co-ordination and consultancy on preparing documentation supporting the accepted method;
- assistance in preparing credible numerical argumentation demonstrating that the price established by the Client stays within the required bracket in comparison to the prices used in transactions between independent entities - gathering information on independent entities comparable to the Client in respect of their business activity and functions, and performing comparative economic analysis;
- consultancy on tax planning and tax optimisation with respect to the establishment and implementation of the proper transfer pricing method in international transactions.
In doing the above work we have co-operated with PwC's global network of transfer pricing teams, thus being able to provide advice and assistance in relation to existing exposures and implementing proper preventive measures in international trade.
- Optimization of tax costs, administration and procedures related to advertising and promotional activities to ensure the tax deductibility of costs of those activities and to minimise Polish VAT burdens connectetd therewith.
- Overall tax optimization, particularly with regard to maximizing corporate tax savings. We provide assistance in establishment and implementation of tax effective methods of funding Polish operations of pharmaceutical companies, depending on the scope of their business in Poland. Furthermore tax planning and optimisation of construction projects in Poland (e.g. optimisation of costs of financing, application of investment reliefs, refunds of excess input VAT, accelerated depreciation, sale&lease-back options etc.)
- Assistance in establishment of a tax effective distribution arrangements for our pharmaceutical clients. Our advice included research, advice and implementation of business schemes such as commissionaire sales and consignment agents.
- Advice on the most tax efficient solutions pertaining to mergers and acquisitions of existing pharmaceutical businesses in Poland. Our advice especially focused on those mergers and acquisitions relating to the privatisation of the pharmaceutical sector in Poland.
- Advice on applicability and effective use of investment reliefs available for pharmaceutical companies (eg. where investment expenses relate to implementation of GMP standards).
- Representing our clients' interest before fiscal authorities and assistance at all stages of tax audits.
- Assistance in obtaining tax rulings from appropriate tax authorities with respect to particular issues emerging from business activities of our pharmaceutical clients.
- Assistance with respect to identifying the areas of potential tax risk or "grey areas", where the law is unclear, or there is room for double- or misinterpretation. Practical provide recommendations and implementation of rectifying solutions.
- Advise on the potential impact of the new Pharmaceutical Law regulations on the business concerning such issues as: Marketing Authorisation concept, manufacturing and wholesale of pharmaceuticals, analysis of marketing strategies in view of the new advertising regulations.
- Tax effective integration/restructuring of business entities or business operations - tax planning, implementation, tax due-diligence reviews, post-integration or post-acquisition solutions.
- International Assignment Function, including a variety of services to foreign assignees to ultimately reduce tax and social costs arising from the transfer of expatriates into Poland, and also offer a broad scope of services in the area of employment law including, in particular :
- tax-efficient delivery of expatriate and national remuneration arrangements, in particular minimisation of personal income tax and social security burdens;
- tax-structuring of employee benefits including share schemes, housing and car schemes;
- tax planning for high net worth Polish residents;
- pension planning;
- personal tax compliance services;
- applications for visas and work permits.
- drafting and revising contracts of employment,
- drafting of company laws,
- preparation of paper work for establishment of social funds;
- monitoring and information on changes in labour law related legislation;
- overview of the system of compensations adopted by the employing entity to check its compliance with the law.
We work closely with our international network of partners and staff dealing with expatriate tax matters to ensure co-ordination of our world-wide service, effective cross-border tax planing and implementation of best practice in this fast-growing field of activity.
ON-LINE TAX SERVICE
We are also very pleased to inform you that our on-line tax service was recently launched at
http://www.taxonline.pl/
The service was created in response to the queries and expectations of our clients, encouraging common use of the internet in our daily business, as well as to spread professional, comprehensive and up-dated tax knowledge. Within our on-line information, you will find the following topic sections:
Tax Law (the most important tax acts pertaining to individual tax categories, selection of interpretations and court decisions).
Library of Publications (selection of our publications concerning all kinds of tax liabilities: Corporate Income Tax, Personal Income Tax, Value Added Tax, Customs and Foreign Trade, Special Economic Zones, other tax issues).
Our Services (comprehensive offering of tax consultancy services, new products, contact information and interactive tools).
Seminars (seminar offer as well as description of recently conducted seminars, conferences and workshops for our Clients).
Tax Forum (opinion-creating monthly publication discussing controversial, new and interesting tax-related topics; forum's users will also have the opportunity to exchange opinions via
Tax Forum).
SUBSCRIPTIONS
Our online tax service
(http://www.taxonline.pl/) offers a variety of free of charge weekly on-line subscriptions concerning various tax issued as well as daily tax press review.
Our pharmaceuticals tax team includes:
Mariusz Ignatowicz, Tax Partner
ph. +48 (22) 523 47 95, fax +48 (22) 508 46 00
