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07 / 09 / 17 – Poland: Newsletter 42/2017 - Tax authorities will accept e-certificates of residence

This is to let you know that, on 26 June 2017, the Head of National Revenue Administration made an ex officio amendment (ref. DPP7.8221.33.2017.GFQV) to the negative private tax ruling issued by Director of Poznań Tax Chamber on 25 August 2016 (ref. ILPB3/4510-1-281/16-4/ŁM) regarding the right to use certificates of tax residence in an electronic form.

In accordance with the law, natural persons in business, legal persons or other organisations which make payments to foreign entities for items enumerated in Article 21(1) CIT Act or Article 29(1) PIT Act (royalties, interest, selected intangible services) must withhold income tax and remit it to the competent tax offices. This is subject to applicable double tax treaties (DTT). A treaty rate or exemption may be applied only if the Polish withholding agent has a certificate of tax residence of the foreign party.

The Polish tax authorities maintained that where such a certificate may be issued in a given country electronically or on paper, only the original on paper was acceptable in Poland. The Polish authorities would not question an electronic certificate only if the issuing country did not issue paper-form certificates at all.

According to the Head of National Revenue Administration, that approach was wrong. The amended ruling says that neither the CIT Act nor the Taxes Management Act provides any special regulation on the form a certificate of tax residence should have to be acceptable in Poland. Therefore, where a foreign jurisdiction allows its tax authorities to issue certificates of tax residence in both an electronic and a paper form and both those forms have equal status, there is no reason for refusing to accept any of those forms in Poland.

If this issue pertains to your business and you are interested in our assistance, please contact your WTS&SAJA consultant or our office.

Doradztwo Podatkowe WTS&SAJA Sp. z o.o.
Budynek Bałtyk XIII p.
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60-829 Poznań
tel. (+48) 61 643 45 50                 
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Biuro w Warszawie
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Al. Jerozolimskie 81
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This Newsletter provides general information and is designed to keep you up-to-date with changes in tax law, tax rulings and interpretations, case law development and interesting commentaries.
Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions that follow from the contents hereof.

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