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Withholding tax

Withholding tax

Changes in CIT provisions regarding withholding tax. Tax collected by tax remitter. Tax reclaim applications. DTT analysis.

Changes in withholding tax regulations. WHT reclaims. CJEU.

Non-residents who obtain revenues from Polish residents, in particular in the form of dividends, interest and royalties, receive their payments decreased by withholding tax (WHT) collected by the tax remitters. Frequently, tax remitters collect WHT even though it is not due or is due at a lower rate taking into account the rules laid down in EU law or respective double tax treaties (DTT).

In order to manage such situations, the International Corporate Tax Team (ICT Team) offers its clients the following services:

  • analysis of the applicability of tax exemptions for foreign investment and pension funds, in particular in light of the CJEU jurisprudence (so-called “Aberdeen / Fokus Bank” claims);
  • recognition of tax-deductible costs associated with interest/royalties payments obtained by foreign recipients (on net basis – so-called “Net taxation” claims);
  • analysis of the applicability of the tax exemption or preferential tax rate stemming from the domestic tax provisions or relevant DTT;
  • preparation of the relevant documentation required to benefit from the tax exemption or the preferential tax rate stemming from the domestic tax provisions or the respective DTT;
  • identification of WHT reclaim possibilities stemming from incompatibility of the Polish law with EU regulations, incorrect application of DTT provisions or lack of respective documents necessary to apply tax exemption or preferential tax rates;
  • obtaining WHT refunds along with interest due under the Polish law;
  • submission of the reclaims and representation of taxpayers in front of tax authorities (administrative proceedings) and courts (court litigation);
  • filing tax ruling applications in respect of possibility to apply tax exemptions / rate reductions stemming from domestic or DTT provisions.

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