1. GENERAL INFORMATION

1.1. PURPOSE OF COMPILING INFORMATION ON THE IMPLEMENTED TAX STRATEGY

 

The purpose of preparing information on the implemented tax strategy by LS EV Poland Sp. z o.o. (the "Company") is to fulfill the obligation of the Company, according to which taxpayers whose revenues in the previous tax year exceeded the equivalent of EUR 50 million, as well as those operating in the form of a tax capital group, regardless of the revenues achieved by the group, are obliged to prepare and publicly disclose information on the implemented tax strategy for the tax year.
 

Information on the implemented tax strategy has been prepared for the Company's fiscal year beginning January 1, 2023 and ending on December 31, 2023 (fiscal year).
 

Conducting business activities is associated with numerous tax obligations and tax processes with a significant level of complexity. We pay corporate income taxes, customs duties, excise taxes, stamp duties, employee taxes. We also collect and pay employee taxes and indirect taxes, such as value added tax (VAT), agricultural tax, and property tax.
 

The taxes we pay make a significant contribution to the environment in which we operate.

The Company has a tax strategy that indicates the Company's approach to managing the tax function, setting out decision-making formulas, objectives and measures for the correct and timely fulfillment of tax obligations.

We are committed to transparent and constructive relations with all relevant tax authorities.

1.2. LEGAL BASIS FOR INFORMATION ON THE IMPLEMENTED TAX STRATEGY

 

The information on the implemented tax strategy has been prepared in accordance with the requirements of Article 27c of the Corporate Income Tax Act (Journal of Laws of 2020, item 1406, as amended).

 

 

2. ELEMENTS OF INFORMATION ON THE IMPLEMENTED TAX STRATEGY

2.1. TAX PROCESSES AND PROCEDURES
 

Legal basis: art. 27c sec. 2 item 1 letter a of the CIT Act: "information on the taxpayer's: a) processes and procedures concerning the management of the performance of obligations resulting from the provisions of tax law and ensuring their proper execution"
 

LS EV Poland sp. z o.o. complies with tax laws, while analyzing the tax implications related to the Company's business activity and individual business operations, as well as manages tax liabilities as part of its operating activities.

The submitted tax returns, tax information and tax settlements are a full reflection of the business activity in Poland.

Tax obligations are fulfilled by the Company’s designated employees , who ensure both the proper fulfillment of these obligations and the transfer of knowledge within the Company (including by exercising control, setting guidelines or organizing training in the field of tax issues).

The tax area is under the ongoing supervision of the person acting as the Chief Accountant. This person closely cooperates with all business units and ensures that their tax consequences are considered and taken into account when making business decisions. The Management Board of the Company is informed about the current tax situation and about all new projects or tax requirements.

As part of the adopted tax approach, the Company tries to eliminate issues that may be questioned by the tax authorities. To this end, the Company conducts regular internal audits and cooperates with tax advisors, with whom it consults new, unusual or particularly complex issues.

The described activities indicate that the Company exercises due diligence to settle tax liabilities on time and in the appropriate amount. However, due to frequent changes in tax regulations and practice, the Company is not able to completely eliminate situations that may lead to the emergence of tax risks. The company monitors these risks and takes action to prevent or eliminate them.
Eliminating these risks also serves:
- monitoring of tax changes – people involved in tax processes are kept up to date on changes that should be implemented. Responsibility for monitoring tax changes is assigned to the person holding the position of Chief Accountant. This person initiates communication about tax changes to the appropriate people and ensures that these changes are properly reflected in the IT systems used for tax reporting;
- training campaigns for the Company's employees - all employees of the Company regularly participate in both tax training and training on the most important legal issues. Communication is also sent to employees indicating the appropriate procedure in the scope of selected tax issues.

 

Due to transactions with related entities, the Company takes all actions to ensure the correct determination of transfer prices. Transfer prices are determined in accordance with national law and OECD guidelines.

The Company does not enter into transactions that are unrelated to the conducted business activity or that are aimed at avoiding or evading taxation.

The Company carries out processes related to the payment of taxes, including:

- collecting sources on the basis of which the tax base is calculated,

- calculating the tax base,

- calculating the tax,

- declaring the tax liability,

- paying the tax on time

2.2. VOLUNTARY FORMS OF COOPERATION WITH NATIONAL TAX ADMINISTRATION AUTHORITIES
 

Legal basis: art. 27c sec. 2 item 1 letter b of the CIT Act: "information on the taxpayer's: b) voluntary forms of cooperation with the National Revenue Administration authorities"

In the case of contacts with the KAS authorities, the Company demonstrates openness and willingness to cooperate, providing all explanations and required information in a timely manner. Any unintentional errors in the information provided to the tax authorities are identified by the Company as soon as possible and subject to appropriate corrections.

In the 2023 tax year, the Company did not undertake formal voluntary forms of cooperation with the National Tax Administration authorities (i.e. it did not participate in the Cooperation Program).

 

2.3. IMPLEMANTATION OF TAX OBLIGATIONS, INCLUDING INFORMATION ON TAX SCHEMES

 

Legal basis: art. 27c sec. 2 item 2 of the CIT Act: "information on the taxpayer's fulfillment of tax obligations in the territory of the Republic of Poland, together with information on the number of information on tax schemes provided to the Head of the National Revenue Administration, referred to in art. 86a § 1 item 10 of the Tax Ordinance, divided into taxes to which they relate"

Implementation of tax obligations in the territory of the Republic of Poland

In the 2023 fiscal year, the Company realized tax obligations with respect to the following taxes and fees,among others:

- Corporate income tax

- Personal income tax

- Value added tax

- Property tax

- Agricultural tax

- Civil law transaction tax

- Customs duty

The Company settles its tax liabilities and files the necessary tax returns within the statutory deadlines.

Information on tax schemes referred to in art. 86a § 1 item 10 of the Tax Ordinance
The Company did not identify any tax scheme in its operations during the tax year. Therefore, there was no obligation to submit it to the Head of the National Tax Administration.

2.4. TRANSACTIONS WITH RELATED PARTIES
 

Legal basis: art. 27c sec. 2 item 3 letter a of the CIT Act: "information on: a) transactions with related parties within the meaning of art. 11a sec. 1 item 4, the value of which exceeds 5% of the balance sheet total of assets within the meaning of accounting regulations, determined on the basis of the last approved financial statements of the company, including entities that are not tax residents of the Republic of Poland"

The Company’s total assets as of December 31, 2023 amounted to PLN 412,411,366.40. Therefore, in the information on the implemented tax strategy, the Company is required to show those transactions with related parties whose value exceeded PLN 20,620,568.32.

The value of transactions with related parties was determined on the basis of art. 11k sec. 4 and 5 and art. 11l of the CIT Act.

Transactions with related parties
During the fiscal year, the Company did not enter into controlled transactions of a homogeneous nature with related parties, the value of which, calculated separately for each transaction, exceeded 5% of total assets as defined in the accounting regulations.

Transactions with related parties that are not tax residents of the Republic of Poland
During the fiscal year, the Company did not enter into controlled transactions of a homogeneous nature with related parties that are not tax residents of the Republic of Poland, the value of which, calculated separately for each transaction, exceeded 5% of total assets as defined in the accounting regulations.

 

2.5. PLANNED OR UNDERTAKEN RESTRUCTURING ACTIONS
 

Legal basis: art. 27c sec. 2 item 3 letter b of the CIT Act: "information on: b) planned or undertaken by the taxpayer restructuring activities that may affect the amount of tax liabilities of the taxpayer or related entities within the meaning of art. 11a sec. 1 item 4"
 

In the fiscal year, the Company did not undertake restructuring activities, nor does it plan to undertake such activities in the future.

 

2.6. CATALOG OF SUBMITTED APPLICATIONS
 

Legal basis: art. 27c sec. 2 item 3 letter b of the CIT Act: "information on applications submitted by the taxpayer for the issuance of: a) general tax interpretation referred to in art. 14a § 1 of the Tax Ordinance, b) interpretation of tax law provisions referred to in art. 14b of the Tax Ordinance, c) binding rate information referred to in art. 42a of the Act on Goods and Services Tax, d) binding excise information referred to in art. 7d section 1 of the Act of 6 December 2008 on excise duty (Journal of Laws of 2020, items 722 and 1747)"

 

The list of applications submitted during the fiscal year, along with the party submitting the application and the scope of the application, is provided in the table below.

 

Type of application	Party making the request	Scope of the application
Application for a general tax interpretation	no	no
Request for tax law interpretation	no	no
Request for binding rate information	no	no
Application for binding excise information	no	no
Application for APA decision	no	no
Request for other decisions/interpretations affecting the tax settlement	no	no

 

2.7. TAX SETTLEMENTS IN TAX HAVENS
 

Legal basis: art. 27c sec. 2 item 5 of the CIT Act: "information regarding the taxpayer's tax settlements in territories or in countries applying harmful tax competition indicated in implementing acts issued pursuant to art. 11j sec. 2 and pursuant to art. 23v sec. 2 of the Personal Income Tax Act of 26 July 1991 and in the announcement of the minister responsible for public finances issued pursuant to art. 86a § 10 of the Tax Ordinance"
 

During the fiscal year for which information on the implemented tax strategy is prepared, the Company did not make tax settlements in territories or in countries applying harmful tax competition indicated in implementing acts issued pursuant to art. 11j sec. 2 of the CIT Act and pursuant to art. 23v sec. 2 of the Act of 26 July 1991 on Personal Income Tax (Journal of Laws of 2021, item 1426,as amended) and in the announcement of the minister responsible for public finances issued pursuant to art. 86a § 10 of the Tax Ordinance.