Withholding tax

Withholding tax

In most cases, income tax is paid by the entity that earns the income (i.e., e.g., receives interest on a loan granted).

In some cases, however, this tax should be paid to the tax office by the entity that pays the salary / loan interest / dividend etc.

The need to withhold tax

Therefore, if a Polish company

• pays dividends to a parent company based outside Poland;
• repays a loan granted by an entity based outside Poland;
• pays remuneration related to the transfer of copyright;
• pays remuneration under a contract of mandate concluded with an entity based outside Poland;
• pays for legal / accounting / consulting / HR services purchased from an entity based outside Poland;

- it may be obliged to collect withholding tax (WHT) at a rate of 20% and to settle it with the Polish tax office.

Our services

If you have any doubts as to whether withholding tax regulations apply or need assistance in completing the related formalities - do not hesitate to contact us.