On 30 December 2019, a decree was published in the Journal of Laws of the Republic of Poland, which further postponed the application of the most important change to the new withholding tax system (WHT).
According to the decree, withholding agents will not have to apply the new withholding mechanism in Poland until 30 June 2020. This mechanism requires agents to withhold tax at the usual statutory rates (20% for interest, royalties and intangible services and 19% for dividends) if taxable payments made to the same taxpayer exceed PLN 2 million (roughly EUR 460,000) during a tax year.
The new withholding requirements, introduced as part of tax reform for 2019, were originally deferred to 1 July 2019 and then to 31 December 2019.
