This is to let you know that the Finance Ministry published a notice on its website on September 28 that tax consultations started with respect to a proposed guidance document on withholding tax regulations concerning the beneficial owner test (“Draft”).
As is explained in the Draft, the guidance document seeks to clarify how to interpret and apply certain provisions of CIT Act and PIT Act, in force since 1 January 2022, which govern the duty of withholding agents to withhold tax on non-residents’ income derived in Poland. The proposed guidance relates to:
1) the beneficial owner (BO) test,
2) the issue of being subject to effective taxation in the context of PS and IR directives (whose implementation in the Polish CIT Act offers WHT exemption on dividends, interest and royalties, subject to conditions), and
3) the look-through approach (LTA).
The Finance Ministry said in the notice that the Draft comes in response to the expectations of both taxpayers and withholding agents that a new WHT guidance should now be published after the first official document on the subject was released in 2019. According to the notice, having the guidance out in its final, verified version after the consultations is a matter of not too distant future.
Follow the link below for the full text of the Draft (in Polish):
The tax consultations will last until October 10 and we will be actively involved.
If this issue pertains to your business and you are interested in our assistance, please contact us.
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