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


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