Poland

Corporate - Withholding taxes

Last reviewed - 10 June 2022

Domestic provisions: General rules

The general domestic WHT rate for dividends is 19%. Dividends also encompass income from liquidation of a company and the income from the redemption of shares (with the exception of gain from voluntary redemption, which is treated as a capital gain subject to the 19% CIT rate in Poland if the gain is realised by a taxpayer from a non-treaty country or the treaty includes a so-called 'real estate clause').

The general WHT rate on interest and royalties paid to non-residents is 20% (10% regarding services of sea or air transportation). These WHT rates may be reduced by DTTs.

There is also a 20% WHT on payments made to non-residents for intangible services (such as consulting services). However, if a payment is made to a country that has a DTT with Poland, this tax may be avoided with the completion of certain minimal administrative formalities. Few treaties treat payments for technical services as royalties (e.g. India).

The 'beneficial owner' definition determines that entities receiving royalties and interests must constitute the beneficial owner in order to apply the exemption from WHT tax on interest and royalties.

As of 1 January 2019, a new mechanism of settlement of WHT in relation to payments exceeding PLN 2 million per annum for each taxpayer has been introduced (the so-called pay and refund mechanism). The application of this mechanism was suspended until the end of 2021. The package of changes introduced to the Polish tax law regulations starting from January 2022 (the so-called "Polish Deal") has limited the original scope of the application of this mechanism. Under new rules, the conditional exemption from WHT or application of the reduced tax rate stipulated in the applicable DTT is restricted in terms of the passive payments  (i.e. dividends, interest, license fees) in the amount exceeding PLN 2 million per annum made with respect to related entities. In such cases the tax remitter is obliged to automatically collect the tax at a statutory domestic rate (19% or 20%) regardless of the fulfilment of the conditions allowing the application of the exemption or the reduced rate on the basis of the local law or DTT.

Moreover, the tax remitter will be obliged to collect the tax if the total amount of receivables paid in one tax year to one taxpayer exceeds 2 million PLN and, additionally, when transactions without justified economic reasons will not be classified as passive payments (e.g. a payment will be artificially classified as a service).  

In compliance with the new mechanism, the taxpayer/remitter shall have the right to claim for a WHT refund.

Payments for certain intangible services do not fall within the scope of the pay and refund mechanism. Similarly to interest or royalties paid to unrelated parties. Also with regard to passive payments to the benefit of related entities not exceeding PLN 2 million per annum for each taxpayer, the remitter is still entitled to apply a reduced WHT rate or WHT exemption according to the current rules (though some additional requirements are imposed on the tax remitter). In addition, the pay and refund mechanism will not apply to the dividends paid between Polish residents (regardless of their amount).

Regardless of the payment amount, the payer is obliged to undertake due diligence during the verification of the payment recipient in order to apply the preferential WHT rules (the level of verification shall be stronger for related entities).

The new mechanism allows the remitters not to withhold tax in relation to payments exceeding PLN 2 million per annum if the remitter submits a statement confirming that:

  • it possesses all documents necessary for applying reduced WHT rate or exemption from WHT, and
  • it is not aware of any circumstances that speak against granting tax exemption.

In case of tax authorities challenging the amount of withheld tax in the course of the tax audit, the remitter may be held accountable for uncollected tax as to the completeness of the documents and correctness of the facts considered. In addition to uncollected tax, a penalty of 10% to 30% of the tax base may be imposed if the tax authorities question the due diligence or the certification process.  Fines under the Fiscal-Penal Code may be imposed on a person responsible in a remitter’s organization in case of misstatement.

Alternatively, the taxpayer or the remitter shall be able to apply to the tax authorities for a ruling (binding opinion) on the application of reduced rates / exemptions (starting from 2022 such ruling could be issued in terms of passive payments benefiting from a reduced tax rate or exemption under DDTs; to the end of 2021 it only covered payments benefiting from exemptions under the relevant EU Directives).

Special treatment: EU Directives

The CIT law provisions and certain EU Directives provide special treatment for dividends, interest, and royalties paid to numerous European countries.

In general, the transitional rules on interest and royalty payments paid by Polish corporate residents to associated EU or EEA companies, as well as the full exemption after 1 July 2013, only apply to interest and royalty payments between associated companies (parent-subsidiary relationships or sister-sister relationships) in which capital involvements are significant, i.e. the paying company owns or is owned at least 25% by the company receiving interest or the company that pays interest and the company that receives interest are owned at least 25% by the same parent company. Shareholding should be kept for a minimum of two consecutive years.

Dividends paid to corporate residents of EU and EEA countries are exempt from WHT, subject to certain conditions specified in the CIT law. The basic requirement is that the foreign beneficiary holds at least 10% of the shares in the Polish company for a minimum of two consecutive years.

In relation to all given payments (i.e. dividends, interest, royalties), the condition regarding holding shares is also fulfilled if two years passes after the day of the dividend/interest/royalty payment. If the period is interrupted afterwards, the company is obligated to pay the tax at the standard rate with interest.

Note that several additional conditions have to be met for the exemption from the WHT based on the Directive to be applied (e.g. the company receiving the dividend/interest/royalty cannot be exempt from tax on all its income, regardless of its source; the recipient has to have ownership title to the shares in the Polish company).

Additionally, the CIT law states that in order to enjoy the exemption from WHT on dividends, interest and royalties, based on the Directives’ provisions, the relevant DTT or other agreement concluded by Poland should allow exchange of tax information between the tax authorities of Poland and the country of the payment recipient.

Given the fact that Poland did not conclude a DTT with Liechtenstein, payments made to tax residents of Liechtenstein should not benefit from the Directive.

Treaty rates

If EU special rules do not apply, the domestic WHT rates can be decreased by a DTT concluded between Poland and the payment recipient’s country of residence if certain administrative conditions are met (i.e. the payer obtains a valid certificate of a fiscal residence of the payment recipient/beneficial owner).

The following table lists the WHT rates as provided in the treaties concluded by Poland. Notably, the following table shows only rates that result from general treaty provisions; the treaties themselves occasionally include special provisions (applicable in special circumstances or to special entities) that provide lower WHT rates than the ones listed.

Furthermore, if a treaty rate is higher than a domestic one, the latter should apply.

Recipient WHT (%)
Dividends Interest Royalties
Non-treaty 19 20 20
Treaty:      
Albania 5 (1)/10 10 5
Armenia 10 5 10
Australia 15 10 10
Austria 5 (3)/15 0 (4)/5 5
Azerbaijan 10 0 (2)/10 10
Bangladesh 10 (5)/15 0 (6)/10 10
Belarus 10 (7)/15 10 0
Belgium 0 (8)/10 0 (9)/5 5
Bosnia & Herzegovina 5 (1)/15 10 10
Bulgaria 10 0 (10)/10 5
Canada 5(90)/15 0 (11)/10 5 (12)/10
Chile 5 (13)/15 4 (85)/5(86)/10 2 (14)/10
China, People’s Republic of 10 0 (15)/10 10 (16)/10 of 70 (14)
Croatia 5 (23)/15 0 (10)/10 10
Cyprus 0 (17)/5 0 (79)/5 5 (87)
Czech Republic 5 0 (80)/5 10 (81)
Denmark 0 (19)/5 (20)/15 0 (21)/5 5
Egypt 12 0 (22)/12 12
Estonia 5 (23)/15 0 (24)/10 10
Ethiopia 10 10 10
Finland 5 (23)/15 0(4)/5 5
France 5 (97)/15 0 0 (25)/10
Georgia 10 0 (26)/8 8
Germany 5 (3)/15 0 (27)/5 5
Greece 19 (73) 10 10
Hungary 10 0 (10)/10 10
Iceland 5 (23)/15 0 (10)/10 (74) 10
India 10 0 (28)/10 15
Indonesia 10 (13)/15 0 (10)/10 15
Iran 7 0 (29)/10 10
Ireland, Republic of 0 (30)/15 0 (31)/10 0 (82)/10
Israel 5 (32)/10 5 5 (14)/10
Italy 10 0 (33)/10 10
Japan 10 0 (34)/10 0 (35)/10
Jordan 10 0 (10)/10 10
Kazakhstan 10 (36)/15 0 (37)/10 10
Korea, Republic of 5 (3)/10 0 (38)/10 5 (39)
Kyrgyzstan 10 0 (40)/10 10
Kuwait 0 (41)/5 0 (42)/5 15
Latvia 5 (23)/15 0 (43)/10 10
Lebanon 5 0 (37)/5 5
Lithuania 5 (23)/15 0 (10)/10 10
Luxembourg 0 (88)/15 0 (44)/5 5
Macedonia 5 (23)/15 0 (10)/10 10
Malaysia 0 (45) 0 (46)/15 0 (47)/15
Malta 0 (77)/10 (76) 0 (2)/5 5 (78)
Mexico 5 (23)/15 0 (48)/10 (49)/15 10
Moldova 5 (23)/15 0 (37)/10 10
Mongolia 10 0 (10)/10 5
Montenegro (Yugoslavian Treaty) 5 (23)/15 10 10
Morocco 7 (23)/15 10 10
Netherlands 5 (3)/15 0 (75)/5 5
New Zealand 15 10 10
Norway 0 (50)/15 0 (4)/5 5
Pakistan 15(91) 0 (51)/20 15 (52)/20 (53)
Philippines 10 (23)/15 0 (54)/10 15
Portugal 10 (55)/15 0 (56)/10 10
Qatar 5 0 (84)/5 5
Romania 5 (23)/15 0 (43)/10 10
Russia 10 0 (57)/10 10
Saudi Arabia 5 0 (83)/5 10
Serbia (Yugoslavian treaty) 5 (23)/15 10 10
Singapore 0 (58)/5 (18)/10 0(92)/5 2 (14)/5
Slovak Republic 0 (67)/5 0 (43)/5 5
Slovenia 5 (1)/15 0 (60)/10 10
South Africa 5 (23)/15 0 (10)/10 10
Spain 5 (1)/15 0 0 (35)/10
Sri Lanka 10 0 (61)/10 10 (62)
Sweden 5 (23)/15 0 5
Switzerland 0 (20, 50)/15 0 (94)/5 0 (94)/5
Syria 10 0 (63)/10 18
Taiwan 10 0/(95)/10 3 (89)/10
Tajikistan 5 (93)/15 0 (40)/10 10
Thailand 20 0 (59)/10 0 (64)/5 (65)/15
Tunisia 5 (93)/10 12 12
Turkey 10 (23)/15 0 (10)/10 10
Ukraine 5 (23)/15 0 (37)/10 10
United Arab Emirates 0 (66)/5 0 (10)/5 5
United Kingdom 0 (67)/10 0 (68)/5 5
United States 5 (69)/15 0 10
Uzbekistan 5 (70)/15 0 (71)/10 10
Vietnam 10 (23)/15 10 10 (72)/15
Zimbabwe 10 (23)/15 10 10

Notes

  1. When the beneficial owner is a company that directly holds at least 25% of the capital of the company paying the dividends within the whole period of 365 days which includes the day of payment of dividends (for the purpose of calculating this period, no ownership changes directly resulting from reorganizations, such as a merger or division of a company that owns stock or shares of the company paying dividends, will be taken into account).
  2. When interest is paid to the government, the central bank of the state, including local authorities or other government bodies.
  3. When the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends.
  4. When interest is paid to the government, a political subdivision, or a local authority in connection with:
    • to the government, a political subdivision, or a local authority
    • in connection with a loan granted, insured, or guaranteed by a governmental institution for the purposes of promoting exports
    • in connection with a sale on credit of any industrial, commercial, or scientific equipment, or
    • in connection with any loan granted by a bank.
  5. When the beneficial owner is a company that directly holds at least 10% of the capital of the company paying the dividends.
  6. When the interest is paid:
    • to the Central Bank of Poland
    • to the Central Bank of Bangladesh
    • to the government of the Republic of Poland or the government of the Republic of Bangladesh, or
    • in respect of a loan made or guaranteed or insured by the government of the other state, or any agency including a financial institution owned or controlled by the government.
  7. When the beneficial owner is a company (other than a partnership) that directly holds at least 30% of the capital of the company paying the dividends.
  8. When the beneficial owner of the dividends is:

    • a company which is resident in the other Contracting State and which holds directly, for a continuous period of 24 months, at least 10 per cent of the shares in the capital of the company paying dividends
    •  a pension fund which is resident in the other Contracting State, provided that such shares or other rights in respect of which dividends are paid are held for the purposes of activities mentioned in Article 3(1)(i).

  9. When interest is paid:
    • on a loan granted, guaranteed, or insured, or a credit granted, guaranteed, or insured, by a general system organised by the state, including political subdivisions or local authorities for purposes of promoting exports
    • on a loan of whatever kind, except in the form of bearer securities, granted by a banking company,
    • to other states, including political subdivisions and local authorities,
    •  to a pension fund, where the debt-claim on which the interest is paid is held for the purposes of an activity mentioned in referred to in Article 3(1)(i) of the Convention.
  10. When interest is derived by the government of the other contracting state, a local authority and the central bank thereof or any financial institution wholly owned by that government, or by any resident of that other contracting state with respect to debt-claims indirectly financed by the government of that other contracting state, a local authority, and the central bank thereof or any financial institution wholly owned by the government.
  11. When interest is paid in respect of a loan made, guaranteed, or insured by the state or agreed public body or in connection with an indebtedness arising from the sale of any equipment, goods or services, except where the sale or debt is between related parties, where the person entitled to interest is other than the seller or other than a person related to the seller.
  12. Copyright royalties and other similar payments in respect of the production or reproduction of any literary, dramatic, musical, or artistic work (not including royalties in respect of motion picture films and works on film or videotape for use in connection with television) as well as royalties for the use or the right to use any patent or professional experience in an industrial, commercial or scientific field (not including license fees related to rent or franchise agreement
  13. When the beneficial owner is a company that directly controls 20% of the voting stock of the company paying the dividends.
  14. For the use of, or the right to use, any industrial, commercial, or scientific equipment.
  15. When interest is paid:
    • to the government, a local authority, and the central bank or any financial institution wholly owned by that government or
    • to the other resident of the other state with respect to debt-claims indirectly financed by the government of the other state, a local authority, and the central bank or any financial institution wholly owned by the government.
  16. For the use of, or the right to use, any copyright of literary, artistic, or scientific work, including cinematographic films, and films or tapes for radio or television broadcasting, or any patent, know-how, trademark, design or model, plan, secret formula, or process.
  17. The Protocol of 22 March 2012 has entered into force. The Protocol introduces a maximum 5% rate of WHT on dividends and exempts dividends paid to an immediate parent company (other than partnership) that owns at least 10% of the capital of the company paying the dividend.
  18. When the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends in a period of 24 consecutive months.
  19. When the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends, where such holding is being possessed for an uninterrupted period of no less than one year and the dividends are declared within that period.
  20. When the beneficial owner is a pension fund or other similar institution providing pension schemes in which individuals may participate in order to secure retirement benefits, when such pension fund or other similar institution is established, recognised for tax purposes and controlled in accordance with the laws of the other state.
  21. When interest is paid:
    • on a loan of whatever kind granted, insured, or guaranteed by a financial institution owned or controlled by the state
    • in connection with the sale on credit of any industrial, commercial, or scientific equipment
    • in respect of a bond, debenture, or other similar obligations of the government of the state, or of a political subdivision or local authority, or
    • to the other state, or to a political subdivision or local authority.
  22. When interest is paid to the government of the other state, including local authorities and the central bank.
  23. When the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends.
  24. When interest is paid to the government of the other state, including political subdivisions and local authorities, the central bank, or any financial institution owned by the government or on loans guaranteed by the government.
  25. From copyright of literary, artistic, or scientific work.
  26. When the beneficial owner is the government of the other state or central bank.
  27. When the interest, subject to certain exceptions related to silent shareholders, is paid:
    • to the government of Poland or Germany on a loan of whatever kind granted, insured, or guaranteed by a public institution for purposes of promoting exports
    • in connection with the sale on credit of any industrial, commercial, or scientific equipment
    • in connection with the sale on credit goods between companies, or
    • on any loan of whatever kind granted by a bank.
  28. If the following conditions are met:
    • Interests paid to:
      • the government, a political sub-division, or a local authority of the other contracting state or
      • the central bank of other contracting state.
    • When the beneficial owner is a resident of the other contracting state and is derived in connection with a loan or credit extended or endorsed by:
      • Bank Handlowy (in scope of financing export and import) - for Poland
      • the Export-Import Bank of India (in scope of financing export and import) - for India
      • any institution in the other contracting state in charge of public financing of external trade, or
      • any other person, provided that the loan or credit is approved by the government of the first mentioned contracting state.
  29. When the beneficial owner is the government, ministry, other governmental institution, municipality, central bank, or any other bank wholly owned by the government of the other contracting state.
  30. When the beneficial owner is a resident of the other contracting state and directly holds at least 25% of the voting power of the company paying the dividends within the whole period of 365 days which includes the day of payment of dividends (for the purpose of calculating this period, no ownership changes directly resulting from reorganisations, such as a merger or division of a company that owns stock or shares of the company paying dividends, will be taken into account).
  31. Interest paid in connection with:
    • the sale on credit of any industrial, commercial, or scientific equipment
    • the sale on credit of any merchandise by one enterprise to another, or
    • on any loan of whatever kind granted by the bank.
  32. When the beneficial owner is a company that directly holds at least 15% of the capital of the company paying the dividends within the whole period of 365 days which includes the day of payment of dividends (for the purpose of calculating this period, no ownership changes directly resulting from reorganisations, such as a merger or division of a company that owns stock or shares of the company paying dividends, will be taken into account).
  33. If the following conditions are met:
    • When the payer of interests is the government or contracting state or a local authority of thereof.
    • Interest is paid to the government of other contracting state or local authority thereof (including financing institutions) wholly owned by other contracting state or local authority thereof.
    • Interest is paid to any other entity, including financial institutions, in relation to loans made in application of an agreement concluded between governments of contracting states.
  34. When beneficial owner is the government of other contracting state, including local authorities thereof, the central bank, any financial institutions controlled by that government or any resident of the other contracting state with respect to debt-claims, guaranteed or indirectly financed by institutions mentioned above.
  35. For payments connected with copyrights, literary, artistic, and scientific activity, including payments connected with films for cinemas and films and tapes for TV.
  36. When the beneficial owner is a company that directly or indirectly holds at least 20% of the capital of the company paying the dividends within the whole 365 day period that includes the day of the payment of the dividends (for the purpose of computing that period, no account shall be taken of changes of ownership that would directly result from a corporate reorganisation, such as a merger or divisive reorganisation, of the company that holds the shares or that pays the dividends).
  37. When interest is paid to the government or local authorities.
  38. Interest arising in a contracting state in respect of loans or credits made, insured, or guaranteed: 
    • in the case of Korea, by the Export-Import Bank of Korea, Korea Development Bank, Korea Finance Corporation (KoFC), Korea Trade Insurance Corporation (K-sure), Korea Investment Corporation, and any other financial institution, performing similar functions of a governmental nature, established and owned by the government of Korea, and
    • in the case of Poland, by the Korporacja Ubezpieczeń Kredytów Eksportowych S.A (KUKE S.A.), Bank Gospodarstwa Krajowego (BGK), and any other financial institution, performing similar functions of a governmental nature, established and owned by the government of Poland, and
    • and paid to a resident of the other contracting state shall be taxable only in that other state.paid to a resident of the other contracting state shall be taxable only in that other state.
  39. If the recipient is the beneficial owner.
  40. Interest paid to government or central bank.
  41. When the beneficial owner is:
    • the government of the other contracting state, entity, or any governmental institution or
    • a company that is a resident of the other contracting state and at least 25% of its capital is directly or indirectly owned by the entities mentioned above.
  42. If the following conditions are met:
    • When the beneficial owner is:
      • the government of the other contracting state, entity, or governmental institution or
      • a company that is a resident of the other contracting state and at least 25% of its capital is owned directly or indirectly by the entities mentioned above.
    • When interest is paid in connection with loans guaranteed by the entities mentioned above.
  43. When interest is paid: to the government, including the local authorities, to the central bank or any financial institution controlled by that government, or on loans guaranteed by that government.
  44. If the following conditions are met:
    • When the beneficial owner is other contracting state.
    • When interest is paid in connection with loans and credits granted by bank.
  45. Dividends paid by:
    • a resident of Poland to a resident of Malaysia who is subject to Malaysian tax in respect thereof or
    • a resident of Malaysia to a resident of Poland who is subject to Polish tax in respect thereof.
  46. Interest paid to resident of Poland on an approved loan or a long-term loan.
  47. Royalties paid to resident of Poland by resident of Malaysia and approved by the competent authority of Malaysia.
  48. If the following conditions are met:
    • When the beneficial owner is:
      • a contracting state, a political subdivision, or a local authority, or The National Bank of Poland or Banco de Mexico or
      • a recognised pension or retirement fund provided that its income is generally exempt from tax in this state.
    • When interest:
      • is paid by any of entities mentioned above
      • arises in Poland and is paid in respect of a loan for a period not less than three years granted, guaranteed, or insured by Banco de Comercio Exterior, S.N.C., Nacional Financiera, S.N.C. or Banco National de Obras y Servicios Publicos S.N.C., or
      • arises in Mexico and is paid in respect of a loan for a period not less than three years granted, guaranteed, or insured by PKO S.A., Corporation of Credit Insurance, and Bank Handlowy in Warsaw.
  49. If the following conditions are met:
    • When the beneficial owner is a bank or insurance company.
    • When interest is derived from bonds and securities that are regularly and substantially traded on a recognised securities market.
  50. When dividends are paid to the company that directly holds at least 10% of the capital paying the dividends on the day they are paid and has done (or will do) so for an interrupted 24-month period from which that date falls.
  51. When interest is paid:
    • by a resident of Pakistan to a Polish company or enterprise on loans approved by the Ministry of Finance of the government of Pakistan
    • to the State Bank of Pakistan from sources in Poland, or
    • to Bank Handlowy in Poland from the sources in Pakistan.
  52. For payments of any kind received in consideration for the use of, or the right to use:
    • any copyright, patent, trademark, design or model, plan, secret formula, or process
    • an industrial, commercial, or scientific equipment, or
    • motion picture films, and works on films and videotapes for use in connection with television.
  53. For payments received in consideration of technical know-how concerning industrial, commercial, or scientific experience.
  54. Interests paid in respect of:
    • a bond, debenture, or other similar obligations of the government, state, political subdivision, or local authority thereof or
    • a loan or credit extended, guaranteed, insured, or refinanced by:
      • Central Bank of Philippines - for Philippines
      • Central Bank of Poland - for Poland, or
      • other lending institutions as specified and agreed in letters of exchange between competent authorities of the contracting states.
  55. When dividends are paid to the company that directly holds at least 25% of the capital stock of the company paying the dividends for an uninterrupted 24-month period prior to the payment.
  56. If the following conditions are met:
    • When the debtor of such interests is the government, a political subdivision, or local authority.
    • When the interest is paid to the government of other contracting state, a political subdivision, or local authority thereof, or an institution or body in connection with any financing granted by them under an agreement between the governments of the contracting states.
    • Loans or credit made on central banks of contracting states and any other financial institution controlled by the state and financing external business that may be agreed upon between the competent authorities of the contracting states.
  57. Interests paid to government, administrative, territorial, or the central bank.
  58. Dividends paid by the company which is a resident of one contracting state to the benefit of the government of the other contracting state.
  59. Interest paid to the government.
  60. Interests paid to government, local authorities, or the central bank.
  61. Interest arising in a contracting state and derived by the government of the other contracting state, including local authorities, a central bank, or any financial institution controlled by that government, shall be exempt from tax in the first contracting state.
  62. When the recipient of a royalty that is a resident of a contracting state is a beneficial owner of the payment.
  63. If the following conditions are met:
    • When recipient is a contracting state, or one of its local authorities, or the statutory body of either, including the central bank; or when interests are paid by a contracting state, or one of its local authorities, or the statutory body of either.
    • Such interest is paid in respect of any debt-claim or loan guaranteed, insured, or supported by a contracting state or another person acting on state’s behalf.
  64. Payments payable to contracting state or a state owned company in respect of tape or films.
  65. Royalties made as consideration, for the alienation, or the use of, or the right to use, any copyright of literary, artistic, or scientific work, excluding cinematographic films or tapes for television or broadcasting.
  66. When the beneficial owner is the government or a government institution of other contracting state or the company that is a resident of the other contracting state and at least 25% of its capital is directly or indirectly owned by the government or a government institution.
  67. When  the beneficial owner of the dividends is a company which is a resident of the other Contracting State and holds at least 10 per cent of the capital of the company paying the dividends on the date the dividends are paid and has done so or will have done so for an uninterrupted 24-month period in which that date falls.
  68. When interests are paid: 
    • to the government, territorial unit, local authority or central bank or any entity owned by the government
    • a loan granted, insured, or guaranteed by a governmental institution for the purposes of promoting exports
    • the sale on credit of any industrial, commercial, or scientific equipment, or
    • any loan granted by a bank.
  69. When the beneficial owner is a company that directly holds at least 10% of the outstanding shares of the voting stock of the company paying the dividends.
  70. When the beneficial owner is a company that directly holds at least 20% of the capital of the company paying the dividends.
  71. When the beneficial owner is:
    • the government or a local authority or
    • the National Bank of Poland or the Central Bank of Uzbekistan Republic.
  72. For payment of any kind, received in consideration, for the use of, or the right to use:
    • any patent, design or model, plan, secret formula, or process or
    • any information concerning industrial or scientific experience.
  73. Treaty allows application of the domestic tax rate.
  74. As long as Iceland does not levy tax at source of income, interest is taxable only in the contracting state of which the beneficial owner of the interest is a resident.
  75. When interest is paid to the government, a political subdivision, or a local authority in connection with:
    • a loan granted, insured, or guaranteed by a governmental institution for the purposes of promoting exports
    • a sale on credit of any industrial, commercial, or scientific equipment
    • any loan granted by a bank
    • in respect of a bond, debenture, or other similar obligations of the government of a contracting state, or of a political subdivision or local authority thereof, or
    • to the other contracting state, or to a political subdivision or local authority thereof.
  76. When the tax is charged by Poland.
  77. When the dividends are paid by a company resident of Poland to a resident of Malta that directly holds at least 10% of the capital company paying the dividends on the date they are paid and has done so or will have done so for an uninterrupted 24-month period in which that date falls.
  78. When the recipient is the beneficial owner.
  79. According to the Protocol of 22 March 2012, which has entered into force, the maximum WHT rate on interest paid is 5%. However, when interest is paid to the government, including political sub-divisions and local authorities, the central bank, or any statutory body of the state with respect to loans or credits made or guaranteed by the government of the other state, including political sub-divisions and local authorities, the central bank, or any statutory body of the other state, it shall be exempt from tax in the first mentioned contracting state.
  80. There is a WHT exemption on interest payable: (i) on any loan or credit granted by a bank; (ii) to the government of the other contracting state, including any political subdivision or local authority thereof, the central bank, or any financial institution owned or controlled by that government; or (iii) to a resident of the other state in connection with any loan or credit guaranteed by the government of the other state, including any political subdivision or local authority thereof, the central bank, or any financial institution owned or controlled by that government. The maximum rate of WHT on interest is 5%.
  81. The maximum WHT rate on royalties is 10%.
  82. The lower rate applies to fees for technical services.
  83. When interest is paid: (i) by the government of a contracting state, administrative subdivision, or local authority thereof; (ii) to the government of the other contracting state, administrative subdivision, or a local authority thereof; or (iii) to the central bank of the other contracting state or a corporate body (including financial institution) controlled or owned by that state, a political or administrative subdivision, or local authority thereof.
  84. If the recipient of the interest is the beneficial owner and interest is paid: (i) to the Republic of Poland or the State of Qatar; (ii) on a loan of whatever kind granted, insured, or guaranteed by a public institution for purposes of promoting exports; (iii) in connection with the sale on credit of any industrial, commercial, of scientific equipment; or (iv) on any loan of whatever kind granted by a bank.
  85. If the beneficial owner of interest is either (i) a bank, (ii) an insurance company, (iii) an enterprise substantially deriving its gross income from the active and regular conduct of a lending or finance business involving transactions with unrelated persons, where the enterprise is unrelated to the payer of the interest (for the purpose of this clause, the term “lending or finance business” includes the business of issuing letters of credit, providing guarantees or providing credit card services), (iv) an enterprise that sold machinery or equipment, where the interest is paid with respect to indebtedness arising as part of the sale on credit of such machinery or equipment, or (v) any other enterprise, provided that in the three taxable years preceding the taxable year in which the interest is paid, the enterprise derives more than 50% of its liabilities from the issuance of bonds in the financial markets or from taking deposits at interest, and more than 50% of the assets of the enterprise consist of debt-claims against unrelated persons.
  86. When the interest is derived from bonds or securities that are regularly and substantially traded on a recognised securities market.
  87. The Protocol of 22 March 2012 has not changed the WHT rate in relation to royalties; however, the beneficial owner clause was introduced. Additionally, the new DTT amends the definition of ‘royalties’.
  88. When the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends, where such holding is being possessed for an uninterrupted period of no less than two years and the dividends are declared within that period.
  89. When royalties are paid for the use of, or right to use, industrial, commercial, or scientific equipment.
  90. When the beneficial owner is a resident of the other contracting state and directly holds at least 10% of the capital of the company paying the dividends within the whole period of 365 days which includes the day of payment of dividends (for the purpose of calculating this period, no ownership changes directly resulting from reorganizations, such as a merger or division of a company that owns stock or shares of the company paying dividends, will be taken into account).
  91. If the capital of Polish company paying dividend is in at least ⅓ part owned by the Pakistan company receiving dividend within the whole period of 365 days which includes the day of payment of dividends (for the purpose of calculating this period, no ownership changes directly resulting from reorganisations, such as a merger or division of a company that owns stock or shares of the company paying dividends, will be taken into account). The condition of length of ownership period applies to dividends starting from the beginning of 2022.
  92. When interest is paid to the government, a political subdivision, or a local authority in connection with:
    • the recipient is state, its central bank, territorial unit, local authority or statutory body,
    • the interest was paid by the state of origin, its territorial unit, local authority or statutory body,
    • the recipient is an institution wholly or mainly owned by the contracting states, which will be periodically determined by the competent
    • the recipient is the Government of Singapore Investment Corporation Pte Ltd.,
    • the recipient is Bank Gospodarstwa Krajowego.
  93. When the beneficial owner is a company that directly holds at least 25% of the capital of the company paying the dividends.
  94. When the recipient of payment is their beneficial owner and is a related party of the paying company.
  95. When interest is paid:
    • to the other territory, its territorial units, local authorities, the central bank or any institution wholly owned or controlled by that other territory,
    • on a loan or a credit granted, guaranteed or insured by a recognised bank for commercial cooperation of the other territory for purposes of promoting exports.
  96. When the beneficial owner is a company that directly controls 20% of the voting stock of the company paying the dividends within the whole period of 365 days which includes the day of payment of dividends (for the purpose of calculating this period, no ownership changes directly resulting from reorganizations, such as a merger or division of a company that owns stock or shares of the company paying dividends, will be taken into account). 
  97. When the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends within the whole period of 365 days which includes the day of payment of dividends (for the purpose of calculating this period, no ownership changes directly resulting from reorganisations, such as a merger or division of a company that owns stock or shares of the company paying dividends, will be taken into account).
  98. Interest  shall be taxable only in the Contracting State of which the recipient is a resident, if such recipient is the beneficial owner of the interest and if such interest is paid to the Government of a Contracting State, a political subdivision or local authority thereof, or the Central Bank of a Contracting State or any institution wholly owned by the Government of a Contracting State.