RSM Poland


Postponed entry into force of certain regulations on withholding tax collection

The amended Act on Corporate Income Tax introduces a new mechanism for collecting withholding tax, as set forth in Article 26 paragraph 2e of the Act on Corporate Income Tax (i.e. Journal of Laws of 2018, item 1036, hereinafter: the CIT Act). The regulations provide for an obligation to collect tax, if the total amount of receivables paid out abroad exceeds the amount of PLN 2,000,000 (say: two million). The tax is then levied on the receivables exceeding the aforementioned threshold. In this case, neither a relevant double taxation treaty nor exemptions under the CIT Act will save you from the tax being collected.


Acting on the basis of an authorisation granted in the amended act, the Minister of Finance issued the Regulation of 31 December 2018 waiving or limiting the enforcement of Article 26 paragraph 2e of the Act on Corporate Income Tax (Journal of Laws of 2018, item 2545), in which he decided that the aforementioned provisions shall be waived and their enforcement temporarily limited.

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The regulation provides for a temporary waiver of Article 26 paragraph 2e of the CIT Act in the case of payment of the following:

  • receivables subject to withholding tax to non-residents with their registered office or management board in a country with which Poland exchanges tax information;
  • dividend and other revenues earned on share in the profits of legal persons to taxpayers who have their registered office or management board on the territory of Poland.

The enforcement of these provisions shall be waived until 30 June 2019.


Apart from the above, the Regulation also provides for an indefinite deferral of the enforcement of Article 26 paragraph 2e of the CIT Act in respect of certain types of receivables or receivables paid to certain recipients.

  1. The deferral covers receivables earned by non-residents among others on interest or discount on bonds issued by both the State Treasury and Bank Gospodarstwa Krajowego and traded on foreign markets.
  2. Furthermore, the deferral covers receivables earned by central banks on interest or discount on treasury bonds issued by the State Treasury on the domestic market and purchased by these banks by 7 November 2015.
  3. Obligations concerning the payment of receivables for the use or the right to use an industrial, commercial or scientific device or means of transport have also been deferred. This deferral involves for example payments under a lease contract.
  4. The deferral shall also apply to payments for fees due for the transport of cargo and passengers accepted for transport in Polish ports by foreign commercial shipping companies.

The Regulation of the Minister of Finance entered into force on 1 January 2019. As a result, taxpayers have more time to prepare to meet the obligations resulting from the new rules of withholding tax collection, namely until 30 June 2019, and payments to certain entities are effectively excluded from the scope of new regulations set forth in Article 26 paragraph 2e of the CIT Act.

Given the scope of changes, we suggest you start preparing for the new regulations as soon as possible, in particular, by way of reviewing transactions subject to withholding tax and preparing documents exempting you from tax by July 2019.

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Should you have any questions or need to discuss the topic further, we encourage you to contact our expert Piotr LISS:


tel. +48 61 8515 766

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