Strategizing International Tax Best Practices – by Keith Brockman

Poland: WHT cash leakage

Effective 1/1/2019, dividends, interest, and royalty payments from Poland will meet higher tax rates, and timing/permanent differences based on a “pay and refund” system.

Statutory tax rates of 19%/20% will be applicable, unless certain pre-conditions are applied for, which may not be certain or provided timely.

These provisions will impact current cash flows with potential adverse consequences on the annual ETR, resulting in additional proactive actions (i.e. providing statements for lower withholding no later than early January, etc.) to mitigate such actions to the extent possible.

EY’s Global Tax Alert provides additional insight on this significant development for multinationals. ¬†Hopefully, other countries will not “follow the leader” by enacting similar actions.

https://www.ey.com/Publication/vwLUAssets/Polands_President_signs_2019_tax_reform_including_strict_withholding_tax_regime/$FILE/2018G_011959-18Gbl_Poland%20-%202019%20tax%20reform%20including%20strict%20withholding%20tax%20regime.pdf

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: