Questions and answers – WHT

What does the concept of due diligence mean?

In the context of withholding tax settlements, this concept has been in force since 1 January 2019, but the legislator has not introduced a legal definition of this concept, which means that verification of its compliance depends on the assessment of each individual...

read more

What is the MLI Convention?

A multilateral convention implementing treaty-based tax law measures to prevent the erosion of the tax base and the transfer of profits (MLI) modifies double taxation conventions (DTC) in a synchronised manner, without the need for time-consuming bilateral...

read more

Paper form or electronic certificate of residence?

Neither the definition of the certificate of residence nor other provisions of the tax law specify in what form (paper or electronic) the certificate should be delivered to the tax authority. It is only indicated that the official documents, including the certificate...

read more

Certificate of residence – what is it?

A certificate of residence is a document issued by the competent tax administration of a taxpayer, confirming the place of residence of the taxpayer for tax purposes, which in the case of corporate income tax payers is the place of its registered office or management...

read more

Beneficial owner – what is the role in withholding tax?

The correct determination of the beneficial owner of the receivables paid affects the possibility of direct application of exemptions, the possibility of not collecting the tax or applying a reduced rate. The payer is obliged to determine the beneficial owner and it...

read more

Who is the beneficial owner?

The beneficial owner is the entity that actually, i.e. actually receives receivables paid to non-residents for payments subject to withholding tax. Pursuant to Article 4a(29) of the Corporate Income Tax Act, the beneficial owner is an entity which, firstly, receives...

read more

What is included in intangible services?

Intangible services include consulting services, accounting market research, legal services, advertising, management and control services, data processing, employee recruitment and staff acquisition services, guarantees and warranties and similar services. It is...

read more

What services and events does withholding tax apply?

The withholding tax obligation applies to the revenues indicated in art. 21 section 1 and 22 section 1 of the Corporate Income Tax Act. It includes such titles of payment as: interest, copyrights or related rights, rights to invention projects, trademarks and...

read more