Withholding tax rules regarding payments exceeding PLN 2 million p.a. still not in force
Date of entrance into force of withholding tax obligations regarding payments exceeding PLN 2 million p.a. was postponed again.
However, according to information from the Ministry of Finance, in force from 1st January 2022 shall not be the rules enacted in 2018, but their new version, currently being drafted (government claims that it shall be revealed in July 2022).
It is considered to change the scope of new withholding tax rules. If however the tax is withheld, a taxpayer (or a remitter, if economically incurred the WHT burden) may apply for a WHT refund. Alternatively, a remitter will be allowed to apply reduced WHT rate, exemption or not to withhold WHT, on additional condition of submitting a very special statement or if a ruling on WHT exemption was issued by Polish tax authorities. Basic rules with this respect, in a new version of rules, shall remain unchanged, but a number of details may differ.
From 1st January 2019 are in force regulations regarding due diligence and the amended definition of a beneficial owner of payments, important to apply reduced WHT rate, exemption or not to withhold WHT (they have not been suspended).
The above mentioned deadlines will be binding irrespective of a tax year of a remitter or a taxpayer.
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Should you be interested in obtaining further information, or would like to discuss the impact of the above changes please contact:
Jacek Wojtach Jacek.Wojtach@mddp.pl tel. + 48 600 389 333 or
Konrad Medoliński Konrad.Medolinski@mddp.pl tel. + 48 504 666 447
or your advisor at MDDP.