Another General Interpretation from the Ministry of Finance Regarding WHT – What Should You Know?
The Ministry of Finance has published a new general interpretation concerning WHT exemptions for interest and royalty payments. Although the Ministry's aim is to ensure the single taxation of these payments, the interpretation does not resolve all doubts related to the applicability of the exemption.
What Does This Mean?
The interpretation primarily addresses one of the conditions for the exemption, which states that the recipient of the interest or royalty payment cannot benefit from an income tax exemption on all their income, regardless of its source.
According to the interpretation, the WHT exemption is only possible if these payments are effectively taxed in the recipient’s country.
Importantly, tax preferences or exemptions in the recipient’s country may exclude the possibility of benefiting from the WHT exemption in Poland. This may include, as it seems, preferences not directly related to interest or royalty payments.
Each transaction requires individual analysis in light of the anti-abuse clause (Article 22c of the CIT Act).
Who Should Pay Attention?
If your company makes significant interest or royalty payments within a corporate group, this interpretation may be critical for the tax safety of your transactions.
How Can We Help?
The experts at Thedy & Partners offer:
- Detailed analysis of your transactions in light of WHT regulations.
- Secure structuring of payments in compliance with applicable laws.
- Minimizing tax risks and support in interpreting regulations.