Poland: Deductibility of U.S. withholding tax on dividends (court decision)

A court decision concerning the deductibility of U.S. withholding tax on dividends

A court decision concerning the deductibility of U.S. withholding tax on dividends

The Regional Administrative Court in Gliwice held that in situations when a brokerage office does not offer the possibility of providing dividend-paying entities with documents confirming the tax residence of investors, which results in the obligation for these entities to deduct 30% (instead of 15%) for U.S. withholding tax, the taxpayer may deduct the tax paid in the U.S. from the tax due in Poland up to the amount of the Polish tax (19%).

The court reversed the individual ruling of the tax authority that provided that the Polish-U.S. income tax treaty allows the taxpayer to deduct only 15% percent for U.S. withholding tax on dividends. 

The case identifying information is: I SA/Gl 24/22 (19 May 2022)

Read a June 2022 report prepared by the KPMG member firm in Poland

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.