30 December 2019 saw the publication in the Journal of Laws (Dz.U.2019 poz. 2528) of the Finance Minister regulation of 23 December 2019 amending the regulation on the disapplication or limited application of Article 26(2e) of the Corporate Income Tax Act (“Regulation”).
The Regulation extends the time during which Article 26(2e) of the Corporate Income Tax Act will be disapplied until 30 June 2020.
Consequently, until that time withholding agents will not have to apply the new withholding mechanism. This mechanism requires agents to withhold tax at the standard statutory rates when taxable payments made to the same taxpayer have exceeded PLN 2 million during a tax year.
The Regulation entered into force on 1 January 2020.
Please note that the Regulation will not affect certain requirements that have already been in force since 1 January 2019, including those concerning:
- due diligence verification of conditions for preferential tax treatment, and
- identification of beneficial owners.
Another regulation was also published in the Journal of Laws on 30 December 2019 (Dz.U. 2019 poz. 2529), with effect from 1 January 2020, i.e. the Finance Minister regulation of 23 December 2019 amending the regulation on the disapplication or limited application of Article 41(12) of the Personal Income Tax Act. This one disapplies the new withholding rules in the PIT Act for a period from 1 January 2020 until 30 June 2020. But we would remind you that withholding agents are still required to apply the new PIT Act withholding rules to payments made between 1 July 2019 and 31 December 2019.
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.