Poland: New taxation law approved by the Polish president
Clearstream Banking1 informs its customers that the Polish president has approved the bill which affects the current withholding tax rules. The new tax regulation will come into force on
1 January 2022
This announcement follows our Taxflash T21011 of 27 May 2021 and T21016 of 7 October 2021, updated on 16 November 2021.
Background
This draft bill includes the following main changes, among others:
- The removal of the obligation for local custodians to apply withholding tax on interest or redemption for treasury bonds. In that respect, the intentions of the Government and the consequences of such changes are still expected to the clarified;
- The restriction of the PLN 2 million limit to interest and dividends paid to related entities, that is to beneficial owners that are affiliated to the issuer;
- The possibility for local custodians to accept copies of Certificates of Tax Residency under certain conditions;
- The withdrawal of undisclosed payments on omnibus accounts from/to the PLN 2 million limit;
- Technical changes in the beneficial ownership definition that will lead to changes in beneficial owner statements when applying for tax relief or the tax reclaim;
- The possibility for beneficial owners to confirm the applicability of the Double Tax Treaties (DTT) rates with tax authorities before taxable payments are made. The procedure may be complex but the confirmation will be binding for local custodians.
Impact on customers
Our local custodian is still reviewing the impacts of this law and the changes it will bring to the tax procedure currently in place. We continue to monitor the Polish market for new developments and will provide more information as it becomes available.
Further information
For further information, customers may contact Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or their Relationship Officer.
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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.