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From 1 January 2022, payers are obliged to use the "pay and refund" mechanism. This mechanism applies if the total amount of receivables paid from passive sources indicated in Art. 21 section 1 point 1 and art. 22 section 1 of the CIT Act (e.g. interest, license fees, dividends), subject to withholding tax (WHT), exceeded the total amount of ...
22 lip 2024 · The Pay and Refund mechanism for Polish withholding tax, in its current form, has been in effect since January 1, 2022. The mechanism involves the payer’s obligation to collect withholding tax (WHT) at the basic rate (19% or 20%).
Foreign investors (both EU and non-EU) may be entitled to withholding tax (WHT) exemption in Poland (e.g. pension funds, investment funds). Consequently, more and more foreign taxpayers suffer increased WHT costs on Polish investments.
29 wrz 2023 · The Ministry of Finance on 28 September 2023 published a new draft tax explanation on withholding tax to clarify the interpretation and application of selected provisions of the Polish corporate income tax law and the Polish individual (personal) income tax law concerning withholding tax.
19 paź 2023 · Poland's Ministry of Finance has published a long-awaited draft of new withholding tax (WHT) explanations (Draft Explanations). Multinational groups with presence in Poland should review their Polish-sourced payments and group structures in light of the Draft Explanations to ensure that Polish WHT relief will continue to apply and evaluate whether new WHT opportunities arise.
29 wrz 2023 · The new draft Explanations provides limited clarification of the withholding tax provisions, focusing primarily on the concept of beneficial owner on the grounds of the Polish CIT and PIT Acts, including the provisions implementing the Interest&Royalties Directive 1, the PS Directive 2 and on the grounds of double tax treaties.
16 lip 2022 · As of 1 January 2022, pay and refund has replaced previously effective relief at source mechanism as a way of withholding tax (WHT) collection for certain types of payments made from Polish entities.
