The guidance provides clarification of the application of the beneficial owner clause for withholding tax under Corporate and Individual Income Tax Laws.
Poland’s Ministry of Finance has issued guidance on 3 July 2025, regarding the application of the beneficial owner clause for withholding tax purposes (WHT clarifications). This guidance clarifies how remitters should collect withholding tax under the Corporate Income Tax Law and the Individual Income Tax Law.
The guidance clarifies the application of the beneficial owner clause for tax collection by remitters, emphasising the due diligence of remitters in determining eligibility for withholding tax preferences under Article 22(4) or 21(3) of the Corporate Income Tax Law or relevant tax treaties.
The guidance ensures that entities complying with WHT clarifications are protected, even if regulatory interpretations change, with this protection guaranteed for future events following the clarification. It provides general clarifications of tax law provisions and ensures protection for taxpayers and remitters who follow the guidance during a settlement period, as per the Administrative Tax Code.
The Ministry of Finance also clarified that the beneficial owner clause is not strictly an anti-abuse measure like GAAR or SAAR.
Additionally, the guidance provides clarifications on withholding tax issues, particularly defining a beneficial owner and the potential use of the look-through approach. Key topics include the status and definition of a beneficial owner, the requirement for genuine business activity, common substance requirements, and specific exceptions, such as the look-through approach in assessing beneficial ownership.
