Beneficial owners recognised for tax purposes in Poland - Equities and ETFs

The following types of beneficial owner of equities and ETFs are recognised for tax purposes in Poland:

• Domestic legal entities;
• Foreign central banks;
• Foreign banks and investment firms (as defined in EU MiFiD regulations);
• International and supranational organisations;
• Foreign governments, foreign administrative subdivisions and foreign local authorities;
• Entities specifically mentioned in the DTT;
• Foreign insurance companies;
• Investment/Pension funds;
• EU investors with substantial holding.

Domestic legal entities

Domestic legal entities are paid gross and are responsible for setting withholding tax themselves.

Foreign central banks

Relief at source, quick or standard refund are available if granted by the DTT signed between Poland and the central bank’s country of residence.

Foreign banks and investment firms (as defined in EU MiFID regulations)

Relief at source, quick or standard refund are available if granted by the DTT signed between Poland and their country of residence.

International and supranational organisations

Beneficial owners that are supranational/international organisations may benefit from a tax exemption. There are no particular Polish regulations granting tax exemption for these entities. However, agencies like the UN, EBRD, and NATO where Poland is a member are exempt from taxation in Poland.

A tax exemption at source or through quick or standard refund is available to those entities.

Foreign governments, foreign administrative sub-divisions and foreign local authorities

Relief at source, quick or standard refund are available if granted by the DTT signed between Poland and their country of residence.

Entities specifically mentioned in the DTT

Legal entities resident of a country having signed a DTT with Poland and whose name is specifically stated in the DTT. These are mainly Government entities or Central Banks. Example: DTT Singapore-Poland: the Monetary Authority of Singapore; the Government of Singapore Investment Corporation Pte Ltd.

A tax exemption at source or through quick or standard refund is available to those entities.

Foreign insurance companies

Relief at source, quick or standard refund are available if granted by the DTT signed between Poland and their country of residence.

Investment funds and pension funds

Eligible investment funds and pension funds: A tax exemption at source or through quick or standard refund is available for eligible investment funds and pension funds (not only EU/EEA) domiciled in a jurisdiction whose legal framework allows Polish authorities to obtain information on accounts held by the fund though an automatic exchange mechanism (e.g. Common Reporting Standard, FATCA).

DTT resident investment funds and pension funds: Investment funds and pension funds residents in a country which has signed a DTT with Poland may benefit from a reduced tax rate on interest payments. A quick refund and standard refund are available in case a relief at source was not obtained.

EU investors with substantial holding

EU investors holding, for 24 months continuously, at least in 10% of the share capital distributed by a Polish Issuer (or no less than 25% of shares in the equity of the company being the payer of interest, as per 2003/49/WE), may benefit from tax exemption on the respective income.

This exemption is granted by the Polish Act of Corporate Income Tax and is related to implementation into Polish law of EU directive 2003/123/EC. 

Note: The 24 months required holding period can be before the impacted income payment but also after it. If the investor received income gross but sells the security before the end of the mandatory holding period, he is under the obligation to pay the tax amount to the Polish Tax Authorities.

For EU investors with a substantial holding, all requests will be assessed on a "case-by-case" basis with current tax regulations and other requirements taken into account.