Poland: PSD exemption denied for indirect shareholders under look-through approach (court decision)
Court holds the 10% ownership requirement applies only to direct shareholdings.
The Polish Supreme Administrative Court on July 8, 2026, issued several decisions addressing the shareholding requirement for the dividend withholding tax exemption under the Parent-Subsidiary Directive (PSD).
The court held that the requirement to hold at least 10% of the shares in the dividend-paying company must be interpreted strictly and applies only to direct ownership interests.
The court further stated that the look-through approach may be used solely to identify the beneficial owner of a dividend payment. In its view, the approach cannot be used to modify or satisfy the statutory ownership requirements for the exemption. As a result, the court denied the PSD exemption for an indirect shareholder despite arguments that it should be treated as the beneficial owner of the dividend.
Read an August 2026 report prepared by KPMG's EU Tax Centre