Poland experiences increase in withholding tax collection due to introduction of “pay and refund” regime

A new, stricter approach of the Polish withholding tax (WHT) remitters to relief at source has been observed in recent months. The above is the impact of changes in the Polish tax legislation, the Polish tax authorities’ approach and, more generally, changes in the tax environment following in particular the Base Erosion and Profit Shifting (BEPS) project.

Foreign investors (both corporations and investment/pension funds) may face negative cash flow impact, additional administrative burdens or ev…