Poland: Costs of foreign posting; withholding on foreign payments; increased real estate tax (court decisions)

A report that includes summaries of recent court decisions

08 August 2023

The KPMG member firm in Poland prepared a report that includes summaries of the following recent court decisions.

The Supreme Administrative Court on 1 August 2023 held (case file II FSK 270/21) that employees subject to short-time posting in other EU countries by a Polish company must be treated in line with the provisions of Directive 96/71/EC and Directive 2014/67/EC concerning the method of reimbursements for posted workers. According to the court, the above-referred directives clearly indicate that the costs of travel and accommodation cannot be treated as part of the employee's remuneration.
The Supreme Administrative Court on 1 August 2023 held (case file II FSK 2836/19) that the requirement to pay withholding tax arises when a foreign entity receives income from a Polish tax resident (i.e., when the source of income is located in Poland), regardless of the place of the supply of services, performing activities, or making payments.
The Regional Administrative Court in Gliwice on 1 August 2023 held (case file I SA/GI 423/23) that increased real estate tax applies both to real estate used in taxable persons’ business activities and real estate that can potentially be applied for such purpose in the future.

Read an August 2023 report prepared by the KPMG member firm in Poland

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