Due to the freedom of economic activity guaranteed by the European Union, Poles establish civil partnerships (or other partnerships) in Poland in order to work abroad – most often in Germany or Austria.

Usually the point is that the partners of such a company personally perform specific work – in Austria, Germany or elsewhere.

For example, a brigade can operate in such a simple way, consisting of people with various qualifications sought, for example, in Austria or Germany – such as welders, fitters working at heights, installers, electricians, or specialists performing finishing works.

After completion of the contract concluded by the company with the principal (for example in Germany or Austria), the partners usually go home and believe that they have done their job well. Sometimes they are still waiting for the money back, e.g. from the retained guarantee deposit, and after some time each of the partners goes to their own tasks and forgets about their activities within the civil partnership.

taxes?

But the tax authorities remember and watch.

For example, the German tax authorities (Finanzamt), usually two or three years after the end of the contract, respond by delivering – sometimes to the partner’s outdated address of residence in Germany – a decision on tax assessment, not only for the year of work completed by the company, but also for next years.

Then there are problems not only with explaining the situation after the end of the contract in Germany, but also with issues related to leaving the company or dissolving a civil law partnership – since its partners, who usually treat themselves as employees – are already involved in other relationships and in a different self-employment.

Where to do things?

All these consequences of establishing a company should be resolved in Poland, but taking into account the German, Austrian or other tax law and the company’s commercial books kept in these countries, during the contract performance period.

Pleasures – yes!

It turns out that the actual abandonment of membership in the company after the end of the contract has not only unpleasant consequences, i.e. the need to clarify the tax situation (of the company and individual partners), but also pleasant consequences, which are usually associated with the division between partners or the assets earned by the company during the performance of the contract, or by dividing the funds resulting from the return of overpaid taxes or the sale of part of the company’s equipment (e.g. cars), or simply settling the value of these assets of the company between the partners.

Limitation – not necessarily!

The limitation periods for claims applicable in Poland affect the time of making the settlement between the partners, in the event of earlier withdrawal of one of the partners from the company.

However, they do not affect the settlement of the value of assets and assets left in the company, even if they are located outside Poland, as the ownership right is not subject to limitation.

That is why it is important that even companies active five, ten or 15 years ago and their partners start to settle accounts with each other, even if they do not run any business today.