On July 1st, 2019, the revised rules for collecting withholding tax [WHT] on payments (including dividends, interest, royalties, intangible services) exceeding PLN 2 million annually for a single non Polish contractor should have been applied – the so-called “pay and refund” system. Under the new rules, WHT remitter would be, in principle, required to collect WHT at a standard rate (19% or 20%) on payments exceeding PLN 2 million and pay the collected tax to the relevant tax office.

However, just before the new rules should have come into force, on June 28th, 2019, the Minister of Finance published a second postponing Regulation (the first one was published on December 31st, 2018 – from January 1st, 2019 to July 1st, 2019) postponing these new WHT rules for another six months. It means, that until the end of 2019, the existing WHT collection rules will be applied (i.a. obligation to exercise a special WHT due diligence).