Poland: Guidance on beneficial ownership for withholding tax relief

On 9 July 2025, the Polish Ministry of Finance has issued binding tax clarifications on the application of the "beneficial owner"-clause to withholding tax relief. The guidance aims to help tax agents determine whether an investor qualifies as the beneficial owner of a payment for Polish withholding tax relief, emphasising due diligence requirements.

Under the guidance, an entity receiving a payment may be classified as a beneficial owner (BO) if it simultaneously fulfills the following criteria:

1. It retains the payment for its own use and benefit, demonstrating economic control over the income.
2. It is under no obligation to transfer the payment, either partially or fully, to another entity.
3. It engages in genuine business activities supported by sufficient human, technical, and financial resources, demonstrating adequate business substance.

The first two conditions are to be evaluated together when determining economic control. Indicators of a failure to meet this threshold include thin pass-through margins, rapid onward transfers and lack of commercial or credit risk borne by the recipient.

The guidance clarifies that the BO condition applies only to passive income payments - such as dividends, interest and royalties - regardless of whether the tax relief is claimed under Polish domestic law or a double tax treaty.

Impact on clients

Our local depository is analysing these clarifications to determine the operational impact on the current tax process. In the meantime, the current process remains unchanged.

Clearstream Banking¹ will continue to closely monitor the situation and will provide further updates as additional information becomes available.

Further information

For further information, please contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or your 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 clients 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. Clearstream Banking S.A. is registered as an Australian CS (Overseas) Facility, under subsection 824B(2) of the Corporations Act 2001, with registration number ARBN 675 244 783.