Month: April 2024

A recruitment agency approached us seeking a favorable legal and tax solution for seafarers within a specific employment pattern. The key aspect of it was that, in addition to the intermediary, it involved several entities in the employment of the crew and the management of the vessel.

From a legal perspective, the involvement of multiple entities necessitates determining the appropriate countries and international agreements under which the sailor operates.

Another closely related issue was social security, which is also complex within the context of international regulations.

Our team efficiently identified the legal and tax implications of this employment model for the crew provided recommended solutions.

Thank to our expert support, the recruitment agency was able to:

• verify the accuracy of seafarers’ contracts, including their legal and tax implications,
• identify potential risks that may arise for sailors entering into contracts under this employment pattern,
• receive tailored recommendations specific to this employment model,
• provide comprehensive knowledge on the subject and inform seafarers, for whom they mediate employment, about potential actions before Polish tax authorities.

We invite recruitment agencies, seafarers and seafarers’ trade unions to collaborate with us.

A seafarer recently approached us. His career, from a legal and tax perspective, reads like an adventurous novel.

The client worked on drilling rigs, which are mobile platforms. He was employed through an agency based in a different country than the shipowner’s headquarters. At the same time, the shipowner had branches in several countries.

The work took place on a specific unit, with the possibility of the employee being transferred to other units owned by the shipowner in various parts of the world.

An additional complication in this scenario was that Poland had not signed a double taxation avoidance agreement with every country that needed to be considered in this case.

The client wanted to know if he had any obligations to the Polish tax office and, if so, whether his employment pattern would allow him to benefit from a tax exemption or abolition relief.

We treated the client’s seemingly intricate professional situation as a challenge.

We thoroughly analyzed the terms of his contract with the employer, the type of vessel, its operational location, and established the shipowner’s scope of activity.

Next, we carefully examined the relevant international agreements governing double taxation avoidance, as well as Polish tax regulations, to propose a solution that was both legally correct and most beneficial for the client.

The dedication, enthusiasm, and above all, the thoroughness and attention to detail of our team allowed us to break down this complex scenario into manageable parts and recommend steps that would not unnecessarily burden the client’s finances.

Thank to our efforts, the seafarer:

• received a favorable solution,
• can confidently prepare for the necessary steps before the Polish tax office,
• will be able to realistically reduce his tax liabilities in Poland, despite a very complex employment model.

In 2023, the owner of a yacht marina on a lake planned to expand the facility. He wanted to increase capacity and improve mooring conditions. However, to achieve this, he needed a new agreement with Polish Waters, which would include the use of an additional 8.200 m2 of water-covered land. That’s when he turned to our law firm for assistance in negotiations.

In September 2023, the owner submitted an application to Polish Waters for an agreement, indicating that he intended to use the land for recreation and water tourism. In October 2023, he supplemented the application with detailed information about the planned construction of water facilities for passenger transport.

In November 2023, Polish Waters proposed a rate of 5.00 PLN/m2. After careful analysis, we concluded that, given the actual intended use of land, this rate was too high.

We initiated negotiations, pointing out the discrepancies between the proposed rate and the intended use of the land.

However, the new year brought new rates, and as a result, in February 2024, Polish Waters raised the proposed rate to 8.90 PLN/m2. Through a series of exchanges between Polish Waters and our law firm, we initially managed to negotiate that the 8.90 PLN/m.2 rate would only apply during the season, while outside the season, it would remain at the originally proposed level of 5.00 PLN/m2.

In the end, we reached an agreement where the rate remained at 5.00 PLN/m2 throughout the entire year. The client agreed to this rate, provided that it would prevent further increases.

Our persistent efforts yielded a positive result – Polish Waters ultimately agreed to the 5.00 PLN/m2 rate year-round (despite the rate increase). This allowed our client to proceed with the marina expansion plans without excessive financial burden.

Thank to our collaboration and the negotiations we conducted:

• the client saved a significant amount, approximately 31.000 PLN annually, by avoiding an inflated rate,
• amidst the fluctuating rates that posed a risk to the client, we secured conditions that allowed for the continued expansion of the marina,
• we avoided potential legal disputes that could have delayed the project.

Finding simple, quick and effective solutions is our specialty.