Poland: Withholding tax collection mechanism; implications of Brexit for withholding tax exemption

Summaries of developments concerning withholding tax

Implications of Brexit for withholding tax exemption

The KPMG member firm in Poland prepared a report that includes summaries of the following developments concerning withholding tax:

  • The Minister of Finance on 22 March 2023 explained—in response to a parliamentary inquiry no. 39620 regarding the withholding tax collection mechanism—that the WH-OSC statement must be submitted by tax remitters to a competent tax authority no later than the last day of the second month following the month in which the threshold of PLN 2 million was exceeded. Any statement submitted after this date will be invalid. Moreover, the Minister of Finance announced that any possibility of amending the regulations, the purpose of which would be to allow the submission of WH-OSC statements by a proxy, is not currently being considered.
  • The Regional Administrative Court in Lublin on 24 March 2023 held (case files I SA/Lu 37/23 and I SA/Lu 38/23) that Brexit makes it impossible to assume that all conditions for using the withholding tax exemption under Articles 21 and 22 of the corporate income tax law have been met. Consequently, the tax authority was right to deny a clearance opinion.

Read an April 2023 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.