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 advisory services) and on royalties, interest, or dividends exceeding PLN 2 million per year. According to the new regulations, a taxpayer cannot automatically apply reduced WHT or WHT exemption.
After 1 January 2021 taxpayers will continue applying provisions on (i) beneficial owner and (ii) WHT due care applied as of 2019. The pay and refund mechanism will not enter into force yet.
Legislative work on regulations is already close to completion. If the regulations are published in the Journal of Laws before 31 December this year, the new WHT regulation will be postponed, at least by the end of June 2021.
We will inform you once draft regulations postponing the WHT provisions are published. We will also inform you about potential exemptions provided by the regulations on the pay and refund mechanism that were announced by the Ministry of Finance.
In case of any questions, please do not hesitate to contact us.
Head of Tax, Board Member