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WHT refunds under the pay-and-refund mechanism
The pay-and-refund mechanism applies to passive payments made to foreign related parties exceeding PLN 2 million in a tax year. Under this regime, withholding tax must be collected by the Polish remitter, and the refund can subsequently be claimed either by the foreign recipient or by the Polish tax remitter.
Such proceedings are conducted under a specific procedure and involve submitting extensive documentation, as well as demonstrating that the conditions for applying a preferential tax rate are met, notably those relating to the recipient’s beneficial ownership of payments.
Our offer
Our services include, in particular, support in:
- assessing the likelihood of obtaining a WHT refund;
- collecting the required documents for filing applications, including preparing relevant statements;
- potentially registering a foreign taxpayer to obtain the Polish tax identification number (NIP);
- preparing applications and representing taxpayers/tax remitters under the pay-and-refund procedure.
Andrzej Paczuski
Founder of the Paczuski Taudul law firm. Tax advisor and recognized expert in providing tax advisory services to entities in the financial and real estate sectors.