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The PZU Group performs numerous reporting duties prescribed by the Polish law. Tax reporting enhances the PZU Group’s transparency, promotes the credibility of entities among investors and other stakeholders and instills trust in Group companies.

Companies belonging to the PZU Group operate in compliance with the prevailing tax law, on the basis of the Tax Group’s Tax Strategy for 2021-2023 and by following the “PZU Group’s Tax Policy” and other internal tax procedures. In February 2024, Agreements on the Principles of Operation of PZU Tax Group for 2024-2026 were concluded.

Tax Group

Since 2021, the Tax Group (Podatkowa Grupa Kapitałowa – PGK) has consisted of the following entities:

PZU as the parent company representing PGK PZU and subsidiaries:

  • PZU Życie
  • PZU Centrum Operacji
  • PZU Pomoc
  • Ogrodowa – Inwestycje
  • PZU Zdrowie
  • Omicron BIS
  • PZU Lab
  • Ipsilon
  • Tulare Investments
  • PZU Cash
  • LINK4
  • PZU Finanse
  • PZU Projekt 01 SA
  • business, operational and accounting processes under the PZU Group operations, including correct implementation of tax obligations and processes;
  • PGK PZU and its Companies carried out several tax settlements of their actions pursuant to the prevailing tax law;
  • The PZU Tax Group accepts only a low level of tax risk in its operations and manages tax risk in accordance with this principle. The activities of the PZU Tax Group aim at eliminating tax risks, in particular through timely payment of tax liabilities and submission of tax returns, as well as fulfillment of other liabilities resulting from the tax regulations, taking into account not only the literal wording of the regulations, but also their purpose;
  • The PZU Tax Group and its member Companies take necessary measures to avoid situations that could lead to violation of the tax law. The business decisions of the PZU Tax Group and the Companies are made on the basis of assessing the impact of tax risks.

Assumptions and strategy of PGK

  • PGK PZU does not engage in aggressive tax planning nor does it plan or execute intentional transactions of artificial nature, whose main purpose or one of the objectives is to achieve a tax benefit. In particular, the PZU Tax Group does not apply solutions that could be regarded as tax avoidance or evasion;
  • the Companies that form the PZU Tax Group are not domiciled in tax havens. What is more, the PZU Tax Group does not settle accounts with other entities based in tax havens in order to reduce its tax liabilities in Poland.
  • The PZU Tax Group carefully analyzes all transactions and the registered offices of its business partners in order to avoid entering into cooperation with business partners who may use solutions aimed at reducing their taxes in Poland;
  • PZU Group companies do not have overdue tax liabilities – they pay their liabilities by the deadlines designated by the tax laws. The annual tax review and the audit of the financial statements performed by the statutory auditor confirm that these calculations are correct. The competent tax office issues a certificate on not having any overdue taxes in response to requests submitted by PZU Group companies.

Tax liabilities

  • corporate income tax (CIT);
  • personal income tax (PIT);
  • value-added tax (VAT);
  • withholding tax (WHT);
  • tax on civil law transactions (PCC);
  • tax on certain financial institutions (asset levy) (FIN);
  • real estate tax (DN-1).
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Public consultations

PZU Group companies participate through the Polish Insurance Association in the process of government legislation and pronounce their opinions during social consultations on bills to change the tax laws. These actions are meant to serve both the social and the economic interests.

In connection with the amendment to the Corporate Income Tax Act, since 1 January 2021 some taxpayers have been obliged to publish information on their tax strategy. The PZU Group satisfies this obligation, referred to in Article 27c of the CIT Act, and the information on the tax strategy it pursues can be found at its website.

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PZU Group is among the largest CIT payers in Poland
XLS

2022 2023
Profit (loss) before tax Income tax paid Effective interest rate Profit (loss) before tax Income tax paid Effective interest rate
Poland 9,818 1,936 19.7% 8,917 1,100 12.3%
Lithuania 118 56 47.3% 112 -17 -15.3%
Ukraine 13 10 71.0% -21 -9 42.4%
Latvia* 43 0 0.0% 51 0 0.0%
Estonia* 24 0 0.0% 22 0 0.0%
* under the tax system in Latvia, tax is paid against the payment of dividend, operations in Estonia are conducted by the Lietuvos Draudimas branch in Latvia
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