The Director of the National Revenue Information System in the interpretation of 8 June 2020 No. 0114-KDIP2-1.4010.65.2020.2.JC took the position that also printers and multifunctional devices used in office activities (not used in any way in the production process) are industrial devices, and therefore payers are obliged to collect withholding tax – pursuant to Article 21(1)(1) of UoCIT.
When interpreting the provisions, DKIS used the analysis of the OECD Tax Committee’s findings relating to Article 12 of the OECD Model Convention, the double taxation convention between Poland and Switzerland as well as court case law.
The authority decided that the equipment in question falls into the category of industrial, commercial or scientific equipment (ICS equipment) within the meaning of both Article 21(1)(1) UoCIT and Article 12(3) of the Polish-Swiss Agreement.
According to the Commentary to the OECD Convention, the term “ICS equipment”, i.e. industrial, commercial or scientific equipment is an inseparable category, meaning equipment used in commercial, professional activities, both strictly industrial and broadly understood commercial and service or scientific activities.
DKIS therefore concluded that “(…) the Applicant is obliged to collect as a payer, pursuant to Article 26(1) in conjunction with Article 21(1)(1) and (2) of the Act, taking into account Article 12(2) of the Polish-Swiss Agreement, income tax on the amounts payable to a foreign entity on account of making the described Equipment available”.