Wihholding Tax (WHT)
Withholding tax (WHT) is levied by Polish payers on certain income earned in Poland by foreign entities having their place of residence, registered office or so-called permanent establishment outside Poland. The WHT is collected on the following income: Interest and...
- Analysis of tax obligations and correct calculation of withholding tax
- Support for establishing the beneficial owner
- Tax audit WHT
- Preparation of WHT payment policy, including:
- analysis of tax and reporting obligations
- identification of the beneficial owner
- developing a due diligence
Ministry of Finance
The tax separation of the transaction at withholding tax is the subject of the judgment of the Provincial Administrative Court
WSA in its judgment of 17 June 2020. (ref. I SA/Sz 65/20) with respect to licence fees (Art. 21.1.1 UoCIT) explained that „ (...) in the case of the predominant benefit and incidental benefits (which do not constitute an intrinsic economic value and are only of an...
No obligation to verify the status of the beneficial owner when exempting dividends from withholding tax
In the judgment of 11 March 2020, case ref. I SA/Wr 977/19, the Provincial Administrative Court in Wrocław revoked the contested interpretation and referred to the verification of the beneficial owner in the situation of using the exemption from withholding tax on...
We encourage you to read the questions and answers, which are regularly updated.
On October 6th we answered the question:
If interest is paid on an instalment basis, will the payer be obliged to collect withholding tax?
Questions and answers
Some double taxation conventions indicate that, in the case of interest on instalment payments, the payer will not be subject to withholding tax. For example, pursuant to Article 11(3)(c) of the DTC between Poland and Germany, in the case of a sale on credit of...
Do related parties have specific conditions when paying interest abroad under double taxation agreements?
Some double tax agreements contain a rule that allows affiliated entities to enjoy the benefits of the agreement (reduced rate) if the interest paid abroad is in line with the market price. When the interest exceeds the market value, affiliated entities may apply the...
Leader of the WHT practice with several years of professional experience in the field of international taxation, which he gained as a representative of the Ministry of Finance to participate in the work of the Organisation for Economic Cooperation and Development (OECD) and the European Commission. He is interested in tax regulations of other countries, including international agreements and conventions on double taxation and regulations covering exchange of tax information with other countries; he also specializes in analysis of the risk of underestimation of taxable income in the transfer pricing area.