The Ministry of Finance is actively working towards finalising the guidelines on withholding tax. The document is expected to be released soon and will be of particular importance for entities making and receiving payments subject to WHT in Poland. Compliance by the taxpayer or remitter with the guidelines provides protection under Articles 14k – 14m of the Tax Ordinance (covering e.g. assessment of tax underpaid/not withheld or initiating fiscal penal control).
The final guidelines on how to interpret the regulations on withholding tax will also influence the positions adopted by tax authorities and potentially administrative courts.
The new draft is currently in the phase of internal consultations within withholding tax task force, which includes tax experts from various organisations. It is assumed that the final guidelines will cover the most problematic issues concerning withholding tax, such as the definition of the beneficial owner or the possibility of applying the look-through approach.
