The end of the first month following the end of the tax year - which in many cases is concurrent with the calendar year - is the deadline for submission of the CIT-10Z form.
This means that many entities have only one week left to prepare and submit the CIT-10Z form to the tax office.
In this form, a tax remitter presents information on withholding tax (WHT) collected during the tax year from payments made to Polish tax non-residents. These payments encompass:
- interest,
- dividends,
- royalties,
- fees for particular intangible services, to include fees for advisory, accounting, market research, legal, advertising, management and control, data processing and recruitment, guarantees, surety payments, and fees for services of similar character.
Please note that submission of this form is not all that is needed with respect to WHT compliance. Until the end of the third month following the end of the tax year, WHT remitters are obliged to file IFT-2R forms. These forms are submitted to both (i) the tax office and (ii) payment recipients. They include information on income derived by Polish tax non-residents, WHT exemption applied, or WHT rate applied.
Please also remember that as of 1 January 2022 restrictive pay-and-refund WHT regime was implemented in Poland. This means that generally, the tax remitter is obliged to (i) first pay WHT to the tax office – even when the conditions for WHT exemption or reduced WHT rate are met – and only then (ii) apply to the tax office for WHT refund. The only way to avoid this obligation is to (i) hold WHT opinion issued by the Polish tax authorities or (ii) submit a statement of the board members confirming that there are no doubts with respect to entitlement to apply WHT preference.
Should you wish to discuss the above with us, please contact Marta Skrodzka, Tax Manager.
