First of all, there are significant anti-abusive provisions upcoming in the local Polish and Dutch regulations as of 2021:
- new business substance requirements for service companies in the Netherlands - minimum EUR 100k of annual wage expenses, office space for the period of 2 years;
- introduction on WHT on interest and royalties paid from DutchCo to low tax jurisdictions;
- implementation of obligatory WHT remittance in Poland (pay-and-refund regime); although the government announced that these regulations will be loosened, no draft aft was published yet.
And if it was not enough, on Friday both countries signed a protocol amending the Double Tax Treaty. The amendment includes:
- real estate clause - right for Poland to tax income on the sale of shares in a Polish real estate company;
- new permanent establishment definition;
- new provisions on determining ultimate tax residency;
- transparent entity clause;
- general anti-abusive clause.
We will let you know once it is known when exactly new DTT regulations come into force.
Head of Tax, Board Member