Poland's tax rules are too unclear and ambiguous for most small and medium-sized enterprises operating in the country. The figures come from a recent poll conducted by employers group PKPP Lewiatan, which showed that 57 percent of small businesses and 60 percent of medium-sized enterprises find the country's tax rules difficult to interpret.

Lewiatan presented the results during a meeting in the Sejm, Poland's lower house of parliament, where it also discussed a laundry list of problems related to the country's tax system that are holding SMEs back.

One example the organization cited was a “tax credit” law that allows SMEs not to pay any taxes for up to 2 years. While that sounds good, the regulations governing the exemption were so complicated that SMEs aren’t' interested in applying for it, said Rafał Iniewski, a tax expert from Lewiatan.

The SMEs play a significant role in Poland's economy. According to Lewiatan's director general Lech Pilawski, they produce three quarters of Poland's GDP, and invest three times more than local governments. Seventy-eight percent of SMEs are profitable, Mr Pilawski said.

Government aid

Bank Gospodarstwa Krajowego (BGK) is putting the finishing touches on a loan-guarantee plan for SMEs. According to some estimates the plan will be worth billions of złoty, and would help finance the current financial needs of companies (excluding investments). BGK would guarantee 60 percent of the value of a given loan. The state-owned bank estimates that around 50,000 of SMEs will apply for these loans.

Jacek Ciesnowski