On June 19 2023, the European Commission issued a statement signalling legislative work on simplifying and synchronising members states’ laws on pay and refund withholding tax (WHT) procedures. The commission pointed out numerous bureaucratic obstacles and inconsistencies that enterprises encounter and result in significant losses.

The Polish WHT system fits well into the commission’s observations. Although there are just two basic WHT rates (in general, 19% for dividends and 20% for interest, royalties and intangible services), the system has been made much more complicated in recent years and the practice of the tax authorities makes it difficult to comply with.

Jacek Wojtach of MDDP Poland explains the Polish withholding tax rules and refund procedures, and the issues that could be addressed as the European Commission declares its intention to make legislative changes.


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