Withholding tax (WHT) obligations arise from a broad range of cross-border transactions - especially those involving intangible services or passive payments, such as interest, dividends, or royalties. The responsibility for identifying such transactions rests with Polish tax remitters. Therefore, it is crucial for Polish companies making payments to foreign counterparties to accurately determine the nature of each transaction and assess whether it is subject to taxation in Poland and under which rules.

Incorrect classification of a transaction may expose the tax remitter to liability for unpaid or incorrectly withheld tax.