Withholding tax and international tax advice in Poland

Before a Polish company pays dividends, interest, royalties or fees abroad, it needs to establish whether withholding tax applies and what supports the proposed treatment. We review the payment, the recipient and the relevant treaty, then identify the Polish obligations and the evidence needed before payment.

We also advise on other cross-border tax questions: a foreign company’s presence in Poland, foreign income, controlled foreign company rules and planned changes to a group’s structure. Each issue needs its own analysis; a VAT registration, for example, does not settle whether an income-tax permanent establishment exists.

Which payments need a WHT review?

A payment’s description on an invoice is only the starting point. We examine the contract and what the recipient actually provides. This matters for software and other licences, group financing, management services and distributions to shareholders. Payments to unrelated suppliers may also need a withholding tax assessment.

Domestic law, the applicable double tax treaty and any statutory exemption have to be considered together. A residence certificate is an important document, but does not automatically establish every condition for a preference. Beneficial ownership and other checks depend on the payment and the legal basis being relied on.

Documents to prepare before a cross-border payment

• The agreement, invoices and a short explanation of the actual service, financing or licence.
• The recipient’s country, legal form, relationship with the payer and available residence certificate.
• Amounts already paid and planned to the same recipient during the relevant year.
• Documents supporting a claimed exemption or treaty treatment and, where relevant, the recipient’s role and activity.
• Earlier WHT statements, opinions, filings and correspondence concerning the arrangement.

We agree a document list suited to the transaction. A group questionnaire is useful only if the answers can be checked against the actual arrangement. We explain any missing evidence and who should obtain it, rather than treating a signed declaration as the end of the review.

Relief at source, statements and refunds

We assess whether relief can be applied when the payment is made, whether a special withholding and refund procedure needs consideration, and what filings follow. These procedures do not apply in the same way to every payment. If a management statement is being considered, we explain the verification behind it and the matters the signatory needs to understand.

Where tax has already been withheld, we review the available refund route and evidence. A refund is not automatic, and the assessment should take account of the work, uncertainty and amount involved. We can also support the company in responding to the authority.

Operating in Poland without a subsidiary

A foreign business may have Polish tax obligations even without a Polish company. We review the activities performed by staff or representatives, premises, contracts and the relevant treaty. A warehouse or employee is a reason to examine the facts, not an automatic conclusion that a permanent establishment exists.

We coordinate the Polish analysis with the company’s advisers abroad. Polish VAT obligations and transfer pricing may need separate work alongside the income-tax assessment.

How we work with your accounting team and headquarters

First we map the payments and identify the question requiring a decision. We then provide the agreed assessment, document requirements and recommended next steps. For recurring payments, the work may include a practical review procedure and rules for refreshing evidence. The engagement sets out which filings and implementation tasks are covered.

Tell us what your company needs to decide, which countries are involved and whether there is a deadline. Contact our team to agree the scope and next step. Confidential documents can follow through the channel agreed with your adviser.

Practical guide

Polish withholding tax: documents to check before paying abroad