On 24 June 2020, the Polish Ministry of Finance released a decree that further postponed the effective date of withholding tax rules for corporate income tax purposes. The new effective date is 31 December 2020. The withholding tax was originally scheduled to be effective 1 January 2019 but had been previously postponed to 30 June 2020.
For making the payments of interest, dividends, or royalties or payments for certain intangible services to foreign taxpayers, Polish entities must collect withholding tax at a standard rate of 20% or 19%. Foreign taxpayers or the payers themselves depending on who bears the economic burden of tax can apply for a refund of the withholding tax levied under the pay and refund mechanism.
