Corporate Withholding Taxes in Poland

Poland imposes a number of taxes on companies, including a withholding tax on dividends, royalties, and interest. Domestic and EU provision exist for the Polish withholding taxes and a special tax treatment is in place in line with the provisions set forth in the double tax treaties signed by Poland and other countries worldwide. 

 

The specialists at our Polish law firm can give you detailed information about the withholding taxes in Poland. You can also use the tax calculator provided by our experts to obtain an estimated total tax value.

 

 

The dividend withholding tax has a general domestic rate of 19%. This applies to those dividends paid by a Polish company to a non-resident company. If an EU rate or a double tax treaty rate applies in a specific case, this percentage will be lower. Dividends paid to EU or EEA countries are exempt from a withholding tax if certain conditions apply. An important provision for this purpose is for the foreign company receiving the dividend payment to hold at least 10% of the shares of the Polish company for a period of at least two consecutive years. An exemption can apply to this situation in case of limited joint stock partnerships. One of our attorneys in Poland can give you more information. 

 

 

Interest and royalties payments made by a Polish company to a non-resident company are subject to a 20% withholding tax. An exemption ton this rule applies if a double tax treaty is in place between Poland and the non-resident company’s country of origin. However, this reduced rate may apply only if the receiving company is the beneficial owner of the interest or royalties. A 19% rate may apply in the case of interest payments, depending on the type of interest.

 

A 20% withholding tax on payments made to non-resident companies for intangible services (consulting services) can also apply. One of the corporate income tax experts at our Polish law firm can provide you with detailed information, depending on the particularities of your business.

 

Contact us for more information about taxes in Poland and the tax treatment for different types of companies.