The Finance Ministry (“FM”) has published an on-line release on withholding tax regulations with the following information:
- FM is working on legislation to again postpone the introduction of the WHT refund procedure which requires tax to be withheld at 19% or 20% where the total payments to one recipient exceed PLN 2M within one tax year (the tax can then be reclaimed in whole or in part, but only if proof is made that the reduced rate or exemption applies). This mechanism is to be deferred for the fifth time, this time until 30 June 2021, for both personal income tax and corporate income tax.
- The postponement legislation is scheduled to take effect on 1 January 2021.
- FM is also working to amend various statutory provisions relating to withholding tax (including the ultimate design of the WHT refund procedure). This work is scheduled to be completed in 2021.
Neither the WHT postponement legislation nor the proposed amending bill has been published yet.
We will keep you up-to-date on the progress of these legislative projects.
If this issue pertains to your business and you are interested in our assistance, please contact your WTS&SAJA consultant.
Doradztwo Podatkowe WTS&SAJA Sp. z o.o.
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This Newsletter 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.