Accounting for Branches of Foreign Companies in Poland
Polish bookkeeping, CIT attribution, VAT compliance, payroll and statutory reporting for branches of foreign companies operating in Poland.
A branch is not a separate legal entity. It forms part of the foreign parent company, but its Polish activity must still be recorded, reported and taxed correctly in Poland. This requires a different accounting approach than for a Polish subsidiary.
We coordinate the Polish books, tax filings, head-office settlements and reporting process in English for foreign finance teams.
This service is relevant if
- Your foreign company has a branch registered in the Polish KRS.
- The Polish branch has employees, contracts, costs or revenue.
- You need Polish accounting books and tax filings.
- You need to allocate income and expenses between Poland and head office.
- Your foreign finance team needs clear English reporting.
Branch-specific accounting
Why branch accounting is different from subsidiary accounting
A Polish subsidiary is a separate Polish company. A branch is part of the foreign company itself. This legal difference affects accounting, tax reporting, internal settlements and the documents required from the head office.
Polish subsidiary
- Separate legal entity.
- Own share capital and shareholders.
- Transactions with the parent company are intercompany transactions.
- Own annual financial statements and corporate resolutions.
- Separate legal and tax identity.
Polish branch
- Part of the foreign legal entity.
- No separate shareholders or share capital.
- Internal settlements with head office require allocation rules.
- Polish reporting depends partly on the foreign company's documents.
- Taxable profit must be attributed to the Polish activity.
The chart of accounts, head-office settlements and tax attribution should be designed specifically for the branch structure.
Monthly bookkeeping for a Polish branch
We maintain the branch's Polish accounting records in accordance with the Polish Accounting Act and coordinate the flow of information with the foreign head office.
Local transactions
- Polish sales and purchase invoices.
- Bank transactions and local payments.
- Payroll and employee costs.
- Business travel and operating expenses.
- Fixed assets used by the branch.
Head-office settlements
- Funding received from head office.
- Costs paid centrally for the Polish branch.
- Revenue or contracts managed outside Poland.
- Shared service and overhead allocations.
- Internal reconciliation with foreign accounting records.
Monthly closing
- Ledger reconciliation.
- Profit and loss information.
- Balance sheet data.
- Tax calculation summaries.
- Reporting to the foreign finance team.
Corporate income tax and profit attribution
The Polish branch usually represents the Polish activity of the foreign company. The key tax issue is not only the total profit of the foreign company, but the part of that profit attributable to the Polish branch.
What must be identified
- Revenue generated by the Polish activity.
- Direct operating costs of the branch.
- Assets and personnel used in Poland.
- Functions and risks performed by the Polish branch.
- Head-office costs that may be allocated to Poland.
What we coordinate
- Monthly CIT advance calculations.
- Branch profit attribution methodology.
- Support for allocation keys and internal documentation.
- Annual CIT return preparation.
- Tax advisory where the allocation is complex.
The foreign head office pays management, IT, insurance or administrative costs for the whole group. A part may relate to the Polish branch, but the allocation must be documented and economically justified before it is booked or deducted in Poland.
VAT and JPK compliance
A Polish branch may have Polish VAT obligations even though it is not a separate legal entity. VAT treatment depends on the transactions performed in Poland and the registration status of the foreign company.
Monthly VAT scope
- VAT registers and VAT calculations.
- JPK_V7 preparation and filing.
- Domestic purchases and sales.
- Intra-EU transactions.
- Import, export and reverse-charge transactions.
Branch-specific issues
- Use of the correct Polish VAT registration.
- Distinction between external transactions and internal head-office flows.
- Invoice data and branch identification.
- VAT deduction linked to Polish activities.
- Support during VAT refund or verification proceedings.
The existence of a KRS-registered branch does not by itself determine the full VAT position. The transaction model must be reviewed separately.
Reporting to the foreign head office
The Polish branch must comply with Polish accounting rules, while the foreign head office usually needs the same data in its own reporting structure. We coordinate both requirements.
Polish statutory reporting
- Polish chart of accounts and statutory ledgers.
- Tax registers and filing data.
- Local payroll and employment costs.
- Information required by Polish authorities.
- Branch-specific year-end documentation.
Head-office reporting
- Monthly P&L and balance sheet data.
- Mapping to group reporting categories.
- Reconciliation of branch and head-office balances.
- Explanations of Polish tax and accounting entries.
- Support for group audit and consolidation.
Non-standard reporting packages are scoped separately because foreign groups use different formats and reporting calendars.
Basic pricing
Branch accounting is priced mainly by document volume, transaction complexity and the amount of coordination required with the foreign head office.
For a simple branch with up to 15 source documents and limited local activity.
- Polish statutory bookkeeping.
- VAT register.
- CIT advance calculation.
- Basic accounting reports.
For an operating branch with up to 50 source documents per month.
- Full monthly bookkeeping.
- VAT and CIT calculations.
- Head-office reconciliation.
- English reporting support.
A one-time onboarding fee applies. JPK_V7, payroll, payment management, annual CIT, branch reporting, tax advisory and legal work are priced separately.
Payroll and employment support
A foreign company operating through a Polish branch may employ staff in Poland. Payroll, ZUS and employment documentation must follow Polish rules even though the employer remains the foreign legal entity acting through its branch.
Payroll services
- Gross-to-net salary calculations.
- PIT and ZUS settlements.
- Electronic payslips.
- Leave, absence and benefit accounting.
- Annual employee tax information.
HR and legal coordination
- Employment contracts and amendments.
- Employee files and mandatory documentation.
- Medical examinations and health and safety requirements.
- Termination and settlement documentation.
- Support during labour or ZUS inspections.
Year-end and registry reporting
Year-end obligations for a branch differ from those of a Polish subsidiary because the branch is part of a foreign legal entity. Polish books, foreign financial statements and KRS requirements must be coordinated carefully.
Accounting and tax closing
- Closing of Polish accounting books.
- Branch-level profit and loss calculation.
- Annual CIT return.
- Reconciliation with head-office accounts.
- Support for foreign group audit requirements.
Corporate and KRS coordination
- Review of foreign financial statements required for Polish filing.
- Translation and formal document requirements.
- KRS filing coordination.
- Updates of branch data and representation.
- Legal support where registry issues arise.
Integrated legal support
Accounting, tax and legal coordination under one roof
Branches often require legal support that is directly connected with accounting and tax compliance. This includes KRS registrations, changes of branch representatives, employment documentation, contracts, registry filings and communication with Polish authorities.
Sarego Finance handles accounting, payroll and tax compliance. Legal services are coordinated with Gostyński & Partners, a Polish law firm supporting foreign companies operating in Poland.
Corporate and registry support
- Branch registration and KRS changes.
- Appointment and removal of branch representatives.
- Review of corporate documents from the head office.
- Foreign financial statement filing support.
- Contracts and representation matters.
Employment and authority matters
- Employment contracts and internal policies.
- Labour inspection and ZUS support.
- Tax audit and dispute coordination.
- Formal legal and tax opinions.
- Representation before Polish authorities and courts.
One coordinated process. One point of contact.
Learn more about legal coordinationLegal work is quoted and invoiced separately. No additional legal work is started without prior scope and cost confirmation.
Common risks in branch accounting
- Accounting for the branch as if it were a separate Polish company.
- No documented method for allocating head-office costs.
- Mismatch between Polish books and foreign head-office accounts.
- Incorrect classification of internal and external transactions.
- Incorrect VAT treatment of branch activities.
- Incomplete CIT profit attribution.
- Late filing of foreign financial statements with the KRS.
- Missing payroll, employment or registry documentation.
How onboarding and accounting takeover work
- Branch structure review
We review the foreign company, Polish branch registration, activity, contracts, employees, VAT status and current accounting setup. - Head-office reporting review
We identify how the foreign company records Polish activity and what reconciliation or reporting format is required. - Scope and proposal
We define monthly accounting, VAT, CIT, payroll, reporting and any advisory or legal support. - Systems and authorisations
We configure accounting, KSeF, powers of attorney and the digital document workflow. - Opening balances or handover
We receive Polish books, tax registers, payroll data, branch balances and head-office reconciliation information. - Regular monthly process
The branch receives a document calendar, reporting schedule and defined communication process with the foreign finance team.
Why foreign companies use Sarego Finance
Experience with foreign structures
We understand the difference between a branch, a subsidiary and direct foreign registration in Poland.
Tax advisor supervision
Tax matters and branch profit attribution issues are supervised by a licensed Polish tax advisor.
English communication
Foreign management receives clear requests, deadlines and accounting explanations in English.
Head-office reconciliation
We coordinate Polish records with the foreign company's accounting and reporting requirements.
Digital workflow
Documents are submitted electronically through a KSeF-ready and paperless process.
Integrated legal coordination
Accounting, tax, payroll, employment and KRS matters can be handled within one coordinated structure.
Branch or subsidiary?
Accounting for a Polish subsidiary
A subsidiary is a separate Polish legal entity with its own corporate structure, annual accounts and intercompany transactions.
Compare both structures
Review the legal, tax, accounting and operational differences before choosing the form of presence in Poland.
Who handles your case
Wiktoria Buczek
First contact and client coordination
Initial contact, document collection, proposal coordination and onboarding support.
Get proposal
Sylwia Buczyńska
Chief Accountant
Daily accounting operations, reporting and head-office reconciliation.
FAQ
Does a Polish branch need separate accounting books?
Yes. A registered branch carrying out activity in Poland generally requires Polish accounting records that allow the Polish activity, assets, liabilities, income and costs to be identified.
Is a branch a separate legal entity?
No. A branch is part of the foreign company. It operates in Poland under the legal identity of the foreign head office.
How much does branch accounting cost?
Monthly accounting starts from 1,800 PLN net for a simple low-volume branch and from 2,500 PLN net for a standard operating branch with up to 50 source documents. More complex head-office allocations or reporting requirements are priced separately.
Can the branch have Polish employees?
Yes. Payroll, ZUS and employment documentation must then be handled under Polish rules.
Does the branch file a Polish CIT return?
Where the Polish branch represents taxable activity in Poland, the foreign company generally reports the profit attributable to the Polish branch through the Polish corporate income tax process.
Are transfers between the branch and head office ordinary invoices?
Not automatically. Because the branch and head office are parts of the same legal entity, internal flows require a different accounting and tax analysis from transactions between separate companies.
Can you take over branch accounting from another provider?
Yes. We review the Polish books, tax filings, branch balances and the reconciliation process with the foreign head office before taking over the recurring service.
Send the foreign company name, branch activity, monthly document volume, VAT status, employee count and current accounting position.
All prices are net of VAT and apply to standard cases based on complete and accurate information. Branch tax and reporting obligations depend on the actual structure and activities of the foreign company in Poland.