Poland: Application of beneficial owner clause in withholding tax
Tax clarifications address key and challenging issues related to withholding tax
The final revision of tax clarifications dated July 3, 2025, relating to the application of the beneficial owner clause for withholding tax purposes (WHT clarifications) was published on the website of the Ministry of Finance on July 9, 2025.
The WHT clarifications address issues related to withholding tax, including the definition of a beneficial owner and the potential for applying the look-through approach. They explore topics such as the status and definition of the beneficial owner, the requirement of conducting genuine business activity, common substance, and specific exceptions in assessing the beneficial owner condition, such as the look-through approach clause.
At the same time, the Ministry of Finance stressed that the beneficial owner clause, unlike the general anti-avoidance rules (GAAR) and special anti-avoidance rules (SAAR), is not strictly an anti-abuse clause. Entities adhering to WHT clarifications are afforded protection, even if the interpretation of regulations changes. This protection is formally guaranteed for future events occurring after the clarifications are issued.
Read a July 2025 report prepared by the KPMG member firm in Poland