Recent legislation which, in addition to extending the time for preparation of TP documentation (see one of our previous newsletters), also modified the law enacted as part of the Anti-Crisis Shield 4.0 to address validity of certificates of residence. This recent act is called the Act of 30 March 2021 to amend the Excise Tax Act and Certain Other Acts (Journal of Laws of 2021, item 694, the “Law”).
One of the simplifying measures adopted as part of Anti-Crisis Shield 4.0 provided that, during the COVID-19-related state of epidemic emergency or of epidemic as well as for two consecutive months thereafter, a withholding agent will be deemed in compliance with the requirement of having the taxpayer’s certificate of residence also where the agent holds taxpayer’s certificate for 2019 and its representation that the data therein continue to be valid.
The Law extended the application of that measure to foreign certificates of residence covering also 2020 (on condition the agent has the taxpayer’s continued validity representation). Agents may use such certificates provided that, for as long as they are used, there is no change of taxpayer’s residence for tax purposes and the agent is not in possession of any document, such as an invoice or a contract, implying such a change.
To the extent described above the Law came into force one day after its publication, i.e. on 16 April 2021.
If this issue pertains to your business and you are interested in our assistance, please contact your WTS&SAJA consultant.
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