Poland: Reserved alternative investment fund entitled to refund of withholding tax on dividends (Supreme Administrative Court decision)
The SAC held that a Luxembourg reserved alternative investment fund is eligible for the withholding tax exemption because beneficial ownership is not a statutory requirement.
The Supreme Administrative Court (SAC) on February 6, 2026, held that a Luxembourg reserved alternative investment fund (RAIF) was entitled to a refund of withholding tax on dividends paid by a Polish company.
Background
The case concerned dividends paid by a Polish listed company, through a brokerage house, to a Luxembourg RAIF. Polish tax authorities had denied the withholding tax refund on dividends paid to the RAIF. The authorities argued that the RAIF did not qualify for the domestic dividend exemption under Poland's anti-abuse provision because it was tax-exempt, was not the beneficial owner, and lacked genuine economic activity. The regional administrative court upheld this denial.
Court decision
The SAC overturned the lower court judgment. The SAC held that beneficial ownership is not a condition for the dividend exemption under Article 22(4) of the Corporate Income Tax (CIT) Act. Additionally, the exemption does not require effective taxation of dividends. The SAC also rejected the anti-abuse provision, stating that the tax authorities failed to prove the arrangement resulted in a tax advantage contrary to the parent-subsidiary directive.
Read a September 2026 report prepared by KPMG’s EU Tax Centre