INTERNATIONAL TAXATION, WITHHOLDING TAX

INTERNATIONAL TAXATION, WITHHOLDING TAX

International trade and the cash flows associated with it are governed by different taxation rules. A Polish entity abroad or a foreign entity in Poland may become subject to income tax. Withholding tax is of particular importance in this regard. It applies to dues paid to foreign entities. The responsibility for accounting for this tax lies with the Polish entity making the payment (e.g. interest, royalties, dividends, remuneration for intangible services).

The services offered (tax support) include:

• Tax review to identify and verify transaction flows subject to withholding tax. Based on the information obtained during the review, development of a tailor-made withholding tax procedure. Preparation of model contractual clauses
• Obtaining an opinion on the application of the exemption in order not to apply the “pay and refund” mechanism for payments of a passive nature to foreign related parties.
• Cooperation with foreign tax advisors to analyse whether a foreign permanent establishment of a Polish entrepreneur has been established or whether the work performed by employees is taxed abroad.
• Analysis of taxation of foreign entities in Poland.