Chemicals, Oil & Gas: Tax Services

About us:

PricewaterhouseCoopers is one of the leading companies providing comprehensive tax advice in Poland. At present, our Tax Department has over 180 employees. The vast majority of this team is made up of experienced consultants and licensed tax advisors.

In particular, the Chemical Industry Team of the Tax Department has wide experience in handling the tax aspects of numerous business projects undertaken by companies in the chemical industry in Poland. Within our team, we combine a specialist knowledge of the operations of the chemical sector in Poland with competence in tax matters, as well as a wide practical experience in the implementation of our advice in accordance with the specific needs and expectations of our Clients.

Our experience:

1. Taking into consideration the specific nature of business of our clients in the chemical sector, we have presented them with specific papers concerning regulations connected with the obligatory recycling of packaging, the product and deposit fees, as well as dealing with hazardous substances and chemical preparations in packaging. As a result of our analysis, we offered a major distributor of chemical products a model of co-operation with a recycling organisation (i.e. a waste recycling professional). We also presented a company trading in pesticides (in the context of the regulations concerning paying deposits on packaging for hazardous substances) with an opinion regarding the classification of its products, interpretation of the trading principles on individual levels – together with a suggested method for settling the said issues in its relations with its trade partners – and the tax aspects of the flow of the deposits.
2. In respect of chemical manufacturing companies applying for so-called sector / integrated licences associated with the emission of harmful substances into the environment, we assessed the business activity scenarios of the said entities for compliance with the environmental protection regulations. We analysed the payment of environmental fees, administrative fines, etc. by chemical companies in the context of the third section of the Tax Law and the structure of the clients’ cash flows, with a view to obtaining favourable decisions regarding payments.
3. Within the context of the implementation of a system for trading in rights to emit carbon dioxide into the atmosphere in the European Union, we carried out cross-border advisory projects for EU companies, which related to possible future operating and tax aspects of the emission trading system being designed, with particular emphasis on the possible implications of trading in the said rights within the context of the Polish tax law. These projects were prepared in co-operation with PwC’s foreign offices which are involved in matters related to emission trading.
4. We have analysed companies’ investment expenditures on the construction of plants and warehouses, suggesting, among other things, tax optimisation scenarios with regard to Corporate Income Tax and VAT, which also took into consideration the need to simplify the tax structures and documentation procedures to a minimum. Our clients’ additional investments in the public infrastructure played a vital role in the said advisory projects. These investments offer the possibilities of optimising their financial position in co-operation with the local authorities (which included preparing an opinion on the possibility of a given company being exempted from real estate tax, etc., in connection with its carrying out an investment project in the territory of a given commune, together with an evaluation of communal resolutions and applications for the opinion of a tax office in this regard).
5. We have the specific knowledge and experience in the individual sub-sectors of the chemical industry. In particular, as part of our services we have carried out the following comprehensive projects for PwC’s clients, which have been aimed at the following:
1. optimising their tax position/minimising possible tax risks with regards to the VAT rates applicable to the sale of chemical products;
2. developing/implementing tax-effective business structures enabling our clients to use various sales support instruments [such as, among other things, providing advertising stands, paint mixers, all sorts of economic incentives (e.g. bonuses, discounts, etc.)];
3. the classification (for excise duty purposes) of products which have excise duty components and the treatment of the production/distribution of the said components in respect of excise duty.
6. We have been commissioned by chemical companies (including those in the fuel industry) to develop tax-effective scenarios/models of the deliveries of selected goods to Poland and their subsequent distribution in the territory of our country or abroad (using such tools as, e.g. agency structures, consignment sale, etc.).

At our clients’ request (including fuel companies), we have evaluated and developed the regulations governing loyalty programs and other marketing campaigns [providing them with appropriate comments regarding the tax treatment], which ensured that the promotional measures were structured in a way which was attractive from the point of view of minimising tax costs.