Adam Rajewski, Magdalena Kostowska 
Rzeczpospolita

Dividends paid to foreign companies based in the European Union or European Economic Area are exempt from corporate income tax. This exemption is subject to several conditions. According to Polish tax administration, one of them is that the recipient of the dividend must be its beneficial owner. The Supreme Administrative Court disagrees (see judgment of 27 April 2021 in case no. II FSK 240/21) and says that the company paying a dividend need not check if the recipient is its beneficial owner. This case presents important guidance for Polish companies paying dividends to foreign entities.