The Ministry of Finance has published a draft regulation which is to extend the validity of statements (WH-OSC) for the purposes of withholding tax collection.
As a reminder, if payments for dividends, interest and royalties to related entities exceed the threshold of PLN 2 million in the tax year, tax must be charged at the national rate.
However, it is possible not to charge the tax if the payer submits a declaration of: possession of the required documents, verification performed and no contraindications to apply the preferences.
An “initial” and a “subsequent” statement are to be submitted. According to the position of the Ministry of Finance, the total deferral of WHT collection in this mechanism is only 4 months. This causes practical problems in a situation where tax would have to be collected after this deadline.
In view of the above, the Ministry proposes to extend the validity period of the “initial” statements until the end of the tax year and “subsequent” statements, which are to be submitted by the end of the first month after the end of the tax year of the payer.
Importantly, the provisions would apply to payers whose declaration has not expired yet. The issue of other payers would be covered by the amendment to the CIT regulations being processed by the ministry.