Poland: Extension of the Certificate of Tax Residence validity period - update II
Note: This announcement, originally published on 6 July 2020 and updated on the 17 August 2020 , has been further updated to include clarification on the statement of residency. Changes have been highlighted.
Clearstream Banking1 would like to inform customers that effective
immediately
the Polish Parliament has approved changes to the Law on Corporate Income Tax (CIT) and the Law on Personal Income Tax (PIT) which have been published in the Polish Journal of Laws.
The changes provide an extension of the validity of the Certificate of Tax Residence (COTR) during a pandemic period.
Background
Over the duration of the COVID-19 pandemic period that began in Poland on 20 March 2020 and for two months thereafter, investors can benefit from an extended COTR period of validity and can receive a COTR copy under certain conditions described below.
While the start of the pandemic period in Poland was declared as being 20 March 2020, the official end of the pandemic period remains to be defined and will be decided by the Polish Government.
Impact on customers
Over the duration of the pandemic that began in Poland on 20 March 2020 and for a period of two months after, customers are reminded that the laws affect COTRs issued without a validity period, copies of COTRs and tax remitters.
COTRs issued without a validity period
A COTR issued without a validity period can be extended for two months following the end of the pandemic period, even if 12 months from the issuance date have already passed.
For example: A COTR issued on 15 June 2019, with no validity period, would normally be valid until 14 June 2020.
If the pandemic period ends in September 2020, a COTR issued on 15 June 2019, with no validity period, would be valid until the end of November 2020.
Copies of COTRs
A copy of a COTR can be accepted by Polish tax remitters if the investor data from the COTR copy does not create justified doubts as to the actual tax situation of the investor.
For example: If the pandemic period ends in September 2020, an investor can submit a copy of the COTR up until the end of November 2020.
Tax remitters
Tax remitters can accept a COTR issued for the 2019 tax year upon receipt of a statement from the investor confirming that all of the data on the COTR is still up to date. Customers can provide this statement as a free format declaration or use the template provided (see attachment) by our local depository.
For example: a COTR issued in February 2019 with a validity period for the year 2019 will normally be valid until 31 December 2019.
If the pandemic period ends in September 2020, and the COTR is provided during that time, it can be accepted up until the end of November 2020 providing that a statement is accompanied with the COTR from the investor confirming that the data is still up to date.
Like any other self-declaration on the Polish market, the statement must be duly apostilled and notarised.
However, due to Covid-19 situation, our local depository recently confirmed that this statement is only required to be notarised without the need for an apostille.
Further information
Clearstream Banking continues to monitor the Polish market for new developments and will provide more information as it becomes available.
For further information, customers may contact Clearstream Banking Client Services, their Relationship Officer or Tax Help Desk.
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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.