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Budimex among the top 25 largest taxpayers in Poland

News date: October 5, 2020
Budimex among the top 25 largest taxpayers in Poland

Since 2017 Budimex has moved from 61st to 25th place on the list of the largest individual CIT payers in Poland. This Polish construction company is the largest tax payer among construction companies operating on the market. According to the CIT ranking published by the Ministry of Finance in September this year, Budimex generated PLN 123 million in CIT for the previous year.

 

In 2018, Budimex was much lower in the ranking, taking 165th place. As in previous years, Budimex paid the highest tax amount of all construction companies in the country.

 

“In our opinion, it is not the shareholding structure, but the company's commitment to the market and responsibility in this market towards suppliers, subcontractors and society that constitutes the measure of economic patriotism,” said Dariusz Blocher, President of Budimex SA. “We carry out 99% of our construction works in Poland and for Polish investors. We pay taxes here and we also invest here in the development of the company, and thus our country,” added Blocher.

 

According to the President of Budimex, other indicators, not directly related to taxes, are also proof of such responsibility. “Our annual salaries for employees amount to over PLN 1 billion. We work with 50,000 suppliers, subcontractors and partners. In total, about 100,000 people work on our construction sites annually. Most of them are also Polish companies, and local ones where possible. We attach great importance to reliable settlements with all our partners,” said Dariusz Blocher.

 

According to Budimex data, taking into account taxes in the whole chain of suppliers, employees and subcontractors, as well as other social benefits such as Social Insurance Institution (ZUS) premiums, 70% of the funds allocated for remuneration of general construction contractors returned to the State Treasury. Construction companies do not generally appear in the top leading 50 largest taxpayers.

 

The problem for the whole industry of large construction companies is low earning capacity - which according to the Polish Central Statistical Office (GUS) is 1-2%, i.e. five times lower than that of small construction companies. “As a result, construction companies, even though they have higher revenues, do not pay proportionally higher taxes,” explained Dariusz Blocher.

 

This is confirmed by the President of the Polish Chamber of Commerce of Roads and Motorways (OIGD) - Barbara Dzieciuchowicz. “Margins on infrastructural contracts executed for the State Treasury and local government authorities are very low. In addition, there are high risks, mostly transferred to construction companies, related to the terms and conditions of contracts to be executed within 3 years from signing the contract, and 4 or even 5 years from the date of submitting the tender. This is why construction companies are practically absent in the top 50 of the largest taxpayers,” commented President Dzieciuchowicz.

 

“The state should constantly carry out activities to facilitate business operations. This is particularly important for construction companies working primarily on public contracts. The even distribution of contractual risks, real indexation of long-term contracts, stable and predictable financing of investments will contribute to an increase in the number of construction companies among the largest taxpayers in Poland,” said Barbara Dzieciuchowicz.

 

Budimex has been listed on the WIG Respect index (WIG ESG since 2019) regarding the most reliable listed companies since 2011. Budimex is the leader in the construction industry - on average, one in every four kilometres of a motorway or expressway put into service was constructed by this company.

 


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