Improved regulations on use of residence certificates in copy

The Polish Deal implementing legislation introduces, with effect already from 1 January 2022, changes to the CIT Act’s regulations governing use of certificates of residence in copy.

Under current law (Article 26(1n) of the CIT Act), such use is allowed only with respect to non-residents’ Polish-source income from so-called intangible services, as defined in Article 21(1)(2a) of the CIT Act (e.g. advisory, accounting, market research, legal, advertising etc.), and only where payments made to the same recipient within a calendar year total no more than PLN 10,000 and the details on the submitted copy may not be reasonably doubted of being not in accordance with the facts.

On the other hand, under the Polish Deal implementing legislation (which amends Article 26(1n) of the CIT Act), the tax residence of a taxpayer may be evidenced using a certificate of residence in copy, regardless of the category or amount of the payment being taxed, on condition the details on the submitted copy may not be reasonably doubted of being not in accordance with the facts

Notwithstanding the changes described above, there are in force even now similar regulations on use of residence certificates in copy as those to be implemented via the Polish Deal legislation. These current regulations were enacted as part of Anti-Crisis Shield 4.0 and allow for use of copies only for the duration of the COVID-19-related state of epidemic emergency or of epidemic as well as for two consecutive months after it is called off.

The Polish Deal implementing legislation has been submitted to the President for signature. We will keep you up-to-date with its progress.

If this issue pertains to your business and you are interested in our assistance, please contact us.

This blog post is provided for general information purposes to keep you up-to-date with changes in tax law, tax rulings by authorities, case law of courts and interesting commentaries. Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions resulting from reliance on such information.