Market Taxation Guide - Poland
Reference
This Market Taxation Guide (Poland) provides the following details:
- Reference information about all taxes applied at source, through Clearstream1 and its local depositories, to securities deposited in Clearstream; and
- Instructions for obtaining relief at source or a refund of withholding tax, where these are available, through Clearstream.
New and improved tax information and procedures that become available will be included on an ongoing basis.
Important note:
This Market Taxation Guide (including any attachments and other links) is for informational purposes only and is not intended and should not be considered to be legal advice on any subject matter. Readers of this Market Taxation Guide, whether clients or otherwise, should not act or refrain from acting on the basis of any information included in this Market Taxation Guide without seeking appropriate legal or other professional advice.
Withholding tax
Debt Securities (expect T-bonds and EUR mortgage bonds): | Holding restriction | Withholding tax rate a | Relief at source | Quick refund | Standard refund |
No | 0% b / 20% | ||||
Domestic individuals c | Yes | n/a | n/a c | ||
Foreign individuals c | Yes | n/a | Yes | ||
Domestic legal entities d | n/a | n/a | n/a | ||
Foreign central banks | Yes | Yes | Yes | ||
Foreign banks and investment firms (as defined in EU MiFiD regulations) | Yes | Yes | Yes | ||
Supranational or international organisations (where the Republic of Poland is a member of the relevant organisation) | Yes | Yes | Yes | ||
Foreign governments, foreign administrative sub-divisions and foreign local authorities | Yes | Yes | Yes | ||
Entities specifically mentioned in the DTT signed between Poland and their country of residence | Yes | Yes | Yes | ||
Foreign insurance companies | Yes | Yes | Yes | ||
Investment funds and pension funds | Yes | Yes | Yes | ||
EU investors with substantial holding | Yes e | Yes e | Yes e | ||
a. Polish withholding tax rate applied on the relevant interest and redemption payments.
b. 0% on income from PLN mortgage bonds
c. Individuals (both foreign and domestic) will be taxed at 19% upon submission of beneficial owner disclosure.
d. Domestic legal entities are paid gross, and they should settle withholding tax themselves.
e. Relief at source, quick refund and standard refund are offered on a “case-by-case" basis. If clients would like to request this service, please contact the Tax Helpdesk, and the case will be reviewed individually.
Treasury bonds | Holding restriction | Withholding tax rate | Relief at source | Quick refund | Standard refund |
No | 19% a | ||||
Domestic individuals | Yes | n/a | n/a | ||
Foreign individuals | Yes | n/a | n/a | ||
Domestic legal entities b | n/a | n/a | n/a | ||
Foreign legal entities | Yes | Yes | Yes | ||
Investment funds and pension funds | Yes | Yes | Yes | ||
a. The custodian applies a 19% default rate to undisclosed investors. This rate mirrors the highest possible tax for disclosed parties (19% for individuals), ensuring the 20% rate is never levied in practice.
b. Domestic legal entities are paid gross, and they should settle withholding tax themselves.
EUR – denominated mortgage bonds | Holding restriction | Withholding tax rate | Relief at source | Quick refund b | Standard refund |
No | 20% a | ||||
Domestic individuals | Yes | No | No | ||
Foreign individuals | Yes | No | Yes | ||
Domestic legal entities c | Yes | No | No | ||
Foreign legal entities | Yes | No | Yes | ||
Investment funds and pension funds | Yes | No | Yes | ||
a. Polish withholding tax rate applied on the relevant interest and redemption payments.
b. Quick refund is not offered on income payments derived from EUR-denominated mortgage bonds.
c. Domestic legal entities are paid gross and should settle withholding tax themselves.
Equities & ETFs | Holding restriction | Withholding tax rate | Relief at source | Quick refund | Standard refund |
No | 19% | ||||
Domestic legal entities a | n/a | n/a | n/a | ||
Foreign central banks | Yes | Yes | Yes | ||
Foreign banks and investment firms (as defined in EU MiFiD regulations) | Yes | Yes | Yes | ||
Supranational or international organisations (where the Republic of Poland is a member of the relevant organisation) | Yes | Yes | Yes | ||
Foreign governments, foreign administrative sub-divisions and foreign local authorities | Yes | Yes | Yes | ||
Entities specifically mentioned in the DTT signed between Poland and their country of residence | Yes | Yes | Yes | ||
Investment funds and pension funds | Yes | Yes | Yes | ||
Foreign insurance companies | Yes | Yes | Yes | ||
EU investors with substantial holding b | Yes | Yes | Yes | ||
a. Relief at source, quick refund and standard refund are offered on a “case-by-case" basis. If clients would like to request this service, please contact the Tax Helpdesk, and the case will be reviewed individually.
b. Relief at source, quick refund and standard refund are offered on a “case-by-case" basis. If clients would like to request this service, please contact the Tax Helpdesk, and the case will be reviewed individually.
Capital gains tax
There is no capital gains tax withheld through Clearstream on securities held in Clearstream. Capital gains tax may however be payable on specific gains. Clearstream does not assist in this regard. Please consult your tax advisor for further information.
Stamp Duty
There is no stamp duty withheld through Clearstream on securities held in Clearstream. Stamp duty may however be payable on specific transactions. Clearstream does not assist in this regard. Please consult your tax advisor for further information.
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1. Clearstream refers collectively to Clearstream Banking S.A. and Clearstream Europe AG (for Clearstream Europe AG clients using Creation accounts).
