“Payment of profits or advances on anticipated profits” – an article by our experts in Rzeczpospolita
9 July 2025 • Autor: Kancelaria Brysiewicz Bokina i Wspólnicy
The tax regulations that came into force on 1 January 2022 have prompted some entrepreneurs to consider changing their current form of business. Before making such a decision, however, they should familiarise themselves with the rules on the payment of profits and advances to them in other companies.
Tax advisers most often recommend entrepreneurs to convert their business into partnerships – limited partnerships or limited joint-stock partnerships. For entrepreneurs carrying out activities involving special risks, if they meet the conditions for being subject to the flat tax on income (commonly known as Estonian CIT), a limited liability company (Ltd.) is also considered attractive.
The payment of profits or advances on anticipated profits should be one of the factors that determine the choice of the legal form in which the business will be conducted, therefore our experts legal advisor Maciej Wasilewski, partner of BBS and attorney Aleksandra Bobinska present this issue and point out the differences in the regulation of this issue in the above mentioned companies.
The article is available HERE
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