About the ORLEN Group

We provide energy and fuel to over 100 million people in Europe, and our advanced products are available in almost 90 countries on six continents. We have been consistently building our position of a regional leader in energy transition by deploying clean and environmentally friendly technologies and low- and zero-carbon power generation sources. Our activities are guided by our strategy to achieve carbon neutrality by 2050.

The ORLEN Group’s core business consists in the production and distribution of electricity, crude oil processing, and production of fuels, petrochemical and chemical products, as well as sale of the Group’s products on the retail and wholesale markets. The ORLEN Group is also engaged in hydrocarbon exploration, appraisal and production.

The ORLEN Group companies’ business includes also services: crude oil and fuel storage, transport, repair and maintenance services, laboratory, security, project, administrative, insurance and financial services.

It is PKN ORLEN’s ambition to set standards for the discharge of obligations relating to public dues and other public obligations under Art. 84 of the Polish Constitution.

PKN ORLEN has prepared a tax strategy, which is consistent with the ORLEN Group’s business strategy until 2030.

Implementation of the tax strategy means ensuring that all obligations imposed by tax laws are fulfilled correctly and on time, so that the Company contributes to providing public funds to enable or support important social initiatives. With this in mind, PKN ORLEN has introduced increased standards for the performance of tax obligations.

PKN ORLEN has internal structures, infrastructure and technological solutions as well as a system of division of powers and responsibilities enabling proper performance of the tax function. It has put in place uniform high-standard rules for the application of tax laws, including procedures for internal communication and approval of decisions on tax matters.

A number of internal procedures have been introduced to identify and mitigate tax risks.

Members of the PKN ORLEN’s personnel who are in charge of particular activities connected with the tax function have extensive knowledge of tax issues and appropriate qualifications.

In order to ensure proper tax risk management, the Tax Office operating within the Company’s internal structures analyses tax consequences of PKN ORLEN’s projects and activities and is involved in the process of decision making on planned and executed transactions at the earliest possible stage.

In the case of particularly complex issues or issues with respect to which there are differing rulings of courts or other competent authorities, the Company uses expert opinions and studies prepared by independent experts from reputable tax consultancies.

Internal functional audits are held at the Company to examine correctness of application of tax laws by PKN ORLEN’s organisational units, and the Company’s tax settlements are verified in the course of audits performed by independent specialised entities, including statutory auditors.

PKN ORLEN is an active participant in public life. The Company engages in initiatives promoting development and improvement of tax laws in Poland, delivers opinions on proposed legislation, takes part in social consultations in legislative processes, and submits proposals on tax law areas that require regulation.

The Company monitors amendments to the tax laws on an ongoing basis and implements the required changes in the organisation of its business processes and documentation of business transactions resulting from legal regulations and interpretations issued by tax authorities.

To ensure and maintain the highest level of tax security, the Company uses dedicated IT solutions supporting multi-level verification of not only the economic transactions but also their tax consequences. The tax reporting process is automated and is based on records relevant to each type of tax liabilities. Tax returns and tax information are filed with the tax authorities in an automated manner with the use of IT tools that guarantee full control of the process.

PKN ORLEN fulfils a number of tax obligations in Poland, in particular with respect to the following taxes:

PKN ORLEN has been one of the largest corporate income taxpayers in Poland at least since 2012, that is since individual data of CIT taxpayers has been available to the public on the Ministry of Finance website. For the years 2012–2020, i.e. periods which have already been reported to the tax authorities, the Company paid in total over PLN 3.4 billion in income tax in Poland.

The highest standards of due diligence and tax reporting enhance the Company’s tax transparency, strengthen its credibility in the market, and build trust with external customers.

The Company does not engage in any activities aimed at tax optimisation or tax evasion, nor does it take any actions which may increase the tax risk or expose the state budget or local municipality budgets to the risk of an illegitimate decrease in amounts of public dues.

PKN ORLEN does not have any tax arrears, and all of its tax obligations are fulfilled in a timely manner and with due diligence.