Poland: Statute of limitation for tax reclaim for Netherlands, Denmark and Germany - update
Note: This announcement originally published on 16 January 2018 was updated to clarify the DTT details between Poland and Germany.
Clearstream Banking’s1 local depository advised that the Polish local taxation office recently refused to apply the standard five-year statutory deadline for tax reclaim filed by Netherlands-based investors. The local tax office based its decision on the double tax treaty (DTT) provisions between the Netherlands and Poland providing a statute of limitation of three years.
In Poland, the usual statutory deadline to reclaim withholding tax is five years from the end of the calendar year in which the relevant withholding tax was paid.
Even so, a local Polish tax office recently rejected tax reclaim submitted by Netherlands-based investors after three years when the tax was levied. This decision was based on the provision in the DTT between Poland and Netherlands stating that tax reclaims have to be done within a period of three years from the end of the calendar year in which the relevant withholding tax was paid.
The DTT between Poland and Denmark provides the same limited statutory deadline of three years, but only with respect to tax withheld on dividend payments.
The DTT between Poland and Germany provides that applications for the refund will be lodged until the end of the fourth calendar year, following the year when withholding tax was levied on the income.
Impact on customers
Based on the local tax office’s recent decision, Clearstream Banking recommends that investors based in Netherlands, Germany and Denmark introduce their reclaim applications on tax withheld within the deadline provided by the DTTs signed between Poland and their own country of residence.
Clearstream Banking must receive the documentation for an application at least two months before the statutory deadline. Please be aware, the Polish Tax Authorities (PTA) do not always consider the standard statutory deadline and might use shorter deadlines specified in the double tax treaty provisions. Clearstream Banking cannot be held responsible in case of rejection of the reclaims by some local tax offices due to differing deadlines applied by the PTA.
For further information, please contact the Clearstream Banking Tax Help Desk or Clearstream Banking Client Services or your Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.