The most taxing issues

For international investors active in Poland, 2023 was a year marked by issues related to withholding tax (WHT). A change of tack by the Polish tax authorities made it difficult to obtain a WHT refund or positive opinions on withholding tax. Finally, on September 28th, a draft law providing official clarifications on the withholding tax was published. The draft refers to the criteria for the ‘beneficial owner’, which includes the condition of genuine economic activity being conducted by the recipient of the payment. The draft indicates a broad approach to the definition of ‘beneficial owner’ and lists a number of prerequisites to be met by the recipients of payments. These include: owning a property, proper management, decision-making in its country of tax residency, an existing office of an operational size, staff with qualifications and competencies appropriate for the business, and bearing the costs of its own activities, including staff costs. However, ther