At the last meeting, the Senate adopted without further amendments a draft bill introducing significant changes to the income tax law, as of 2019.
Thus, from January 2019, new regulations related to the withholding tax (WHT) will apply, which states that in relation to receivables paid to the single taxpayer by the same payer, where the total amount of such receivables in a given year exceeds PLN 2 million, the payer will be obliged to collect, calculate and pay the withholding tax at the rates specified in the relevant Income Tax Act. If the total value of the receivables above does not exceed PLN 2 million, the current regulations shall apply.
Under the new regulations only after paying WHT the taxpayer, his legal representative or the payer will be able to apply for tax refund.
Another “novelty” introduced to the Income Tax Act is the obligation for all taxpayers to submit a written statement from which it should be stated that in relation to the paid receivables, the taxpayer is their actual owner (the so-called: beneficial owner) and meets the conditions for obtaining the exemption.
The legislator provided two simplifications, which are to enable the payer to apply the existing exemptions or preferential rates, even if the threshold mentioned before is exceeded. These are:
- an obligation to submit to the tax authority an appropriate statement confirming that the conditions for using the preferential WHT rate has been met (which shall be made under penalty of fiscal responsibility and sanctions in the form of additional tax liability), or;
- obtaining the opinion of the tax authority on the taxpayer’s application of exemption from withholding tax provided for in the implemented provisions of the EU directives.
In case of any questions in this regard or other issues related to the changes in the WHT collection, please contact the Accace team.