Pay and refund of withholding tax in Poland

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Pay and refund of withholding tax in Poland

Sponsored by

sponsored-firms-mddp.png
intl-updates-small.jpg

From July 1 2019, payments from Poland abroad that are subject to a withholding tax (WHT) regime and exceeding PLN 2 million ($520,000) will be subject to a standard 19%/20% WHT rate.

If a payment qualifies for an exemption or a reduced WHT treaty rate, a recipient (or in cases of gross up clause a WHT remitter) can apply for a WHT refund. The threshold will apply to one recipient per year.

There will be two methods to apply for a reduced WHT rate or exemption at source. One of them will require submitting a very special statement. Any incorrect information provided in the aforementioned statement may result in a 10-30% additional WHT fee, and potentially even personal penalties. The other is to obtain an advance ruling on a WHT exemption issued by Polish tax authorities.

All new WHT procedures will be carried out in an electronic procedure. A number of additional documents will be required, including verification of foreign taxpayer's substance and beneficial owner status (in case of a WHT exemption).

There is not much time until July 1, and neither remitters, taxpayers, or even Polish tax authorities seem to be prepared for the major change.

The PLN 2 million threshold is calculated inclusive of payments (subject to WHT) starting from January 1 2019. Payments made before July 1 2019 are still subject to an earlier, simpler system of WHT relief, and is based mainly on a certificate of residence of a recipient (taxpayer), as well as due diligence of a paying entity.

more across site & shared bottom lb ros

More from across our site

The plan aims to improve the efficiency, transparency, and effectiveness of direct tax administration in India
Meanwhile, South Africa’s finance minister has accepted a court decision on suspending a VAT increase and US President Donald Trump mulls a 100% tariff on foreign films
Jaime Carey speaks about the benefits of his tax background, DEI values, the use of AI for a smarter legal practice, and other priorities that will define his presidency
Historically low levels of attrition over consecutive years made a ‘difficult decision’ necessary, PwC has reportedly said
WTS Global is also vetting new potential member firms in Algeria, Cote D’Ivoire and Benin, Kelly Mgbor tells ITR in an exclusive interview
The scope of qualifying pillar two tax credits could reportedly be broadened; in other news, hundreds of IRS appeals staff are to resign
For many taxpayers, the prospect of long-term certainty that a bilateral APA offers can override concerns about time, cost and confidentiality
Levine, who served under the Joe Biden administration, led the US’s negotiations on the OECD’s two-pillar solution
The deal to acquire ITR's parent company is expected to complete by the end of May 2025
JBS, the biggest meat company in the world, allegedly used Luxembourgian ‘mailbox companies’ to avoid taxes between 2019 and 2022
Gift this article