Poland 17th in Europe in accounting and tax regulations for business

Poland was ranked 17th in Europe and 37th in the world among countries with the most complex accounting and tax regulations. Among the "most business-friendly" ones, half of Europe is ahead of us in this respect, including our closest neighbors – Ukraine and the Czech Republic. These are the results of the latest report prepared by TMF Group, a global company providing business services for companies operating locally and internationally. 

In Europe, the countries with the most favorable accounting and tax regulations for business are Denmark (at the same time with the second-best score worldwide in this respect with the British Virgin Islands and Curaçao on the podium), Switzerland, Ireland, Norway and the Netherlands. Poland is far behind them. Friendlier countries in terms of the tax and accounting system have also turned out to be the Ukraine, Romania and the Czech Republic, among others, with whom Poland has to struggle for foreign investments. Greece held the lowest position in Europe and the third lowest in the world, and Portugal, Hungary, Croatia and Slovakia were low-ranked. 

Factors contributing to the complexity of accounting and taxation are frequent and rapid changes in legislation, which are unclear and difficult to understand or to interpret. In this respect, in the most business-friendly countries tax authorities are considered as partners for companies. This relationship is characterized by trust in the taxpayers and a high degree of flexibility, such as the possibility to extend financial reporting deadlines.

“Many tax authorities have moved from sanctions to a model based on partnership with businesses, working with them to apply tax legislation correctly and the determination of the appropriate tax bases. From a costs point of view, it is cheaper to help taxpayers comply with the rules than to check reports and identify errors later on. From an entrepreneur's perspective, operating in such a country is less risky, which is one of the magnets attracting foreign investment,” Dagmara Witt-Kuczyńska, a leader in accounting and tax practice for the CEE area in the TMF Group, commented.

(WBJ)