The Director of the National Fiscal Information (so-called Director of KIS) issued an individual tax ruling with the reference no 0111-KDIB2-1.4010.128.2022.2.AR, confirming the possibility to apply the withholding tax exemption for dividends paid to a foreign holding company. According to the position of the Director of KIS, the look-through approach may be applied to verify […]
Changes in CIT Act
A proposition of amended CIT regulations was presented by Ministry of Finance. As of 1 January 2023, the planned changes are about to come into force. Withdrawal of “hidden dividend” regulations One of the most important changes is withdrawal of hidden dividend regulations which was to be introduced within Polish Deal 1.0. Hidden dividend means […]
Withholding tax – first WHT opinions issued by the authorities
As of 1 January 2022 the repeatedly deferred mechanism of withholding tax collection and refund (“pay and refund”) came into force. Consequently, in general tax remitter will no longer be entitled to automatically apply WHT preferences, but will be obliged to withhold tax at the statutory rate. Only then he may apply for tax refund. […]
WHT regime postponement in Poland
On 11 June 2021 draft regulations introducing the postponement (for the sixth time!) of the mandatory WHT pay-and-refund regime until 31 December 2021 were published on the RCL website. As the Ministry of Finance clarifies, the postponement results from the exceptional conditions of the COVID-19 pandemic, which makes it unreasonable to burden payers and taxpayers […]
New obligation for 2021 – TAX STRATEGY
As of 2021 (i) taxpayers with revenues exceeding EUR 50M annually as well as (ii) tax capital groups are obliged to prepare and publicise information about tax strategy realized in the tax year. This in fact means the obligation of preparation of a tax procedure describing the process of carrying out tax compliance. We believe […]
WHT regime postponement in Poland
As we already informed you WHT pay-and-refund regime will apply not earlier than on 1 July 2021. Resolution introducing the postponement was published on 30 December 2020. This is very good news for multinationals, in particular for those investing in Polish real estate. Once WHT regime comes into force, the general rule would be to […]
Protocol amending the Polish-Dutch Double Tax Treaty – what has been agreed?
On 29 October a Protocol amending the Polish-Dutch Double Treaty was signed. The Protocol introduces real estate clause. This means that Poland will also have the right to tax income from sale by Dutch shareholders of shares in a Polish real estate entity. So far this right was attributed solely to the Netherlands. Taxation in […]
Settlements with tax authorities as of 1 January
Significant changes in the context of the structure of the tax offices are upcoming as of 1 January 2021 for entities of strategic importance for the economy. One national and 19 local specialized tax offices Establishing one specialized tax office of a national range for a group of key taxpayers, including taxpayers with revenues exceeding […]
Further postponement of WHT regulations
Please be informed that according to the press release (Dziennik Gazeta Prawna) the Ministry of Finance is planning to issue further regulations postponing the entry into force of the WHT pay and refund mechanism. The deferred provisions stipulate the obligation to collect withholding tax on receivables for certain intangible services (to include management services and […]
Investing in Poland from the level of the Netherlands or through a Dutch holding company is becoming more and more troublesome
First of all, there are significant anti-abusive provisions upcoming in the local Polish and Dutch regulations as of 2021: new business substance requirements for service companies in the Netherlands – minimum EUR 100k of annual wage expenses, office space for the period of 2 years; introduction on WHT on interest and royalties paid from DutchCo […]