Limited liability company shall be taxable according to the rules defined in the law on profit tax. The law defines the model of double taxation of income allocated from the LLC. The income of the company is subject to income tax from legal entities, as well as the tax of dividends paid to shareholders. The same is subject to tax solely the limited liability company where the sole owner (shareholder) is a natural person.
The limited liability company is taxed from legal persons (CIT) of 19%. Tax CIT paid on income of a limited liability company, that is, income minus expenses , using form CIT-2 in the period up to the 20th day of the following month. In addition to the tax, CIT, in the case of payment of profits (dividends) the founders must pay another tax on income of physical persons in the amount of 19%. It's easy to calculate, in case of profit at the level of 100.000 PLN total amount of tax will be 34.390 PLN. It doesn't change the fact that the limited liability company, generating a small profit or even a loss, can bring high income to its partners who are also on the Board of Directors, which receive a "salary" for the performance of its functions.
Of the provisions of the statute of commercial companies, it follows that the method of disposal of net profit shall be settled in the agreement of the company. Accumulated, LLC's profit partners can spend on the payment of dividends, covering of losses from previous years, the increase of the share capital or to the contingency or reserve Fund. The fate of profit partners decide at the end of the financial year in a special decree. Only in the case of a decision on payment of dividends, the shareholders have the right to claim payment of the share in the profits.
The decision of the distribution of profits does not give rise to tax liabilities, and there is only payment (or money order) dividends for the shareholders or increase the share capital of the company from the funds collected in the form of spare or reserve capital (so-called capitalization funds). This applies both to the net profit of the reporting year, as net profit transferred to the capital in previous years.