Selecting the Right Flat-Rate Tax Allowed for Nearly a 50% Reduction in Taxes!

In recent months, our Firm had the opportunity to assist an entrepreneur in the medical industry with selecting the appropriate flat-rate tax rate and securely structuring cooperation with his company.

The entrepreneur, running an individual medical practice, also served as the CEO of a company conducting clinical trials for pharmaceutical firms. In addition to providing basic medical services, such as dermatological consultations, our client also performed clinical trial services for his company, invoicing and receiving remuneration for these services.

Initially, the client taxed all his income at a flat-rate of 14%, as specified in the law for medical services. He turned to our Firm for advice on this matter.

After a thorough analysis of contracts, actual activities, and the latest tax authority interpretations, our experts proposed applying a lower flat-rate tax of 8.5% for clinical trial services. Implementing this change, based on two clinical trial projects per month worth a total of PLN 80,000, would allow the client to save nearly PLN 50,000 in income tax annually!

Moreover, during the review of the client’s contracts, our experts identified irregularities that could expose him to disputes with tax authorities during audits. Cooperation between partners and their companies is currently under increased scrutiny from tax authorities, requiring special attention when structuring these relationships.

We proposed alternative, secure solutions to help the client properly structure cooperation with the company and avoid disputes with the tax office.

By working with our experts, the client gained:

• Confirmation of the possibility to apply the lower flat-rate tax rate, in line with the latest interpretation of the Director of the National Tax Information (KIS), enabling a legal reduction in taxes by nearly 50%.
• A comprehensive analysis of the cooperation model with the company, highlighting potential risks.
• Proposals for implementing safer solutions to minimize the risk of disputes with tax authorities.
• Peace of mind, thanks to confidence in the accuracy of tax settlements.

If your company also needs a professional analysis of the appropriate flat-rate tax rate for recorded revenues or an evaluation of the cooperation and settlements model between partners and the company, our experts are ready to provide reliable support in this area.