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
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