How to Safely Distribute Dividends from Poland
Dividend payments by Polish companies to non-resident shareholders require careful withholding tax analysis. Although exemptions under the Parent-Subsidiary Directive or reduced treaty rates may apply, the Polish tax authorities’ approach and the “pay-and-refund” regime for payments exceeding PLN 2 million often make due diligence, supporting documentation, and beneficial owner verification essential for determining the correct tax treatment.
Dividend payments by Polish companies to non-resident shareholders require careful withholding tax analysis. Although exemptions under the Parent-Subsidiary Directive or reduced treaty rates may apply, the Polish tax authorities’ approach and the “pay-and-refund” regime for payments exceeding PLN 2 million often make due diligence, supporting documentation, and beneficial owner verification essential for determining the correct tax treatment.