Poland: WHaT’s new with withholding tax "pay-and-refund regime"
As of July 2019 the new “pay-and-refund regime” for withholding tax takes effect. The new regulations will cause additional tax obligations for many taxpayers, who make larger payments of dividends, interest, royalties or fees for intangible services to foreign recipients. Larger payments are generally payments which, in total, exceed PLN 2 million to the same recipient in the year.
Withholding tax (WHT) obligations at the standard 19% or 20% tax rates will apply to dividends, interest, royalties and fees for intangible services (such as consulting, accountancy, market survey, advertising, legal, control or management, data processing, recruitment).
How ASB Tax can support you?
We recommend you review the terms and conditions included in contracts concluded with non-resident service providers, to verify which party is responsible for paying any potential WHT.
If you have questions, please contact:
Head of Tax
Senior Tax Consultant - Tax Adviser