Beneficial owners recognised for tax purposes in Poland - Polish equities
The following types of beneficial owner of Polish equities are recognised for tax purposes in Poland:
- Foreign central banks
- Foreign governments, foreign administrative sub-divisions and foreign local authorities
- Foreign banks and investment firms (as defined in EU MiFiD regulations)
- International and Supranational organisations
- Entities specifically mentioned in the DTT
- Residents of Double Taxation Treaty (DTT) countries;
- EU/EEA Investment/Pension funds;
- EU investors with substantial holding
Foreign central banks
Relief at source, quick or standard refund are available if granted by the DTT signed between Poland and the Central Bank’s country of residence.
Foreign governments, foreign administrative sub-divisions and foreign local authorities
Relief at source, quick or standard refund are available if granted by the DTT signed between Poland and the Central Bank’s country of residence.
Foreign banks and investment firms (as defined in EU MIFID regulations)
Relief at source, quick or standard refund are available if granted by the DTT signed between Poland and the Central Bank’s country of residence.
International and Supranational organisations
There are no particular Polish regulations granting tax exemption for supranational/international organisations entities. However, agencies like UN, EBRD, NATO where Poland is a member are exempt from taxation in Poland.
Relief at source, quick or standard refund are available to those entities.
Entities specifically mentioned in the DTT
Legal entities resident of a country having signed a DTT with Poland and whose name is specifically stated in the DTT. These are mainly Government entities or Central Banks. Example: DTT Singapore-Poland: the Monetary Authority of Singapore; the Government of Singapore Investment Corporation Pte Ltd;
Relief at source, quick or standard refund are available to those entities.
Residents of DTT countries
Beneficial owners (Legal entities and individuals) qualifying for the benefit of a reduced rate of withholding tax in accordance with a DTT between its country of residence and Poland.
Only a standard refund is available to those entities.
EU/EEA Investment/Pension funds
A tax exemption is available to the investment funds that satisfy certain eligibility criteria.
Only a standard refund is available to those entities.
EU investors with substantial holding
EU investors holding, for 24 months continuously, at least in 10% of the share capital distributed by a Polish Issuer (or no less than 25% of shares in the equity of the company being the payer of interest, as per 2003/49/WE), may benefit from tax exemption on the respective income.
This exemption is granted by the Polish Act of Corporate Income Tax and is related to implementation into Polish law of EU directive 2003/123/EC. NB: The 24 months required holding period can be before the impacted income payment but also after it. If the investor received income gross but sells the security before the end of the mandatory holding period, he is under the obligation to pay the tax amount to the Polish Tax Authorities.