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May 21, 2021

Polish Ministry of Finance announces plans to further defer withholding tax pay-and-refund system to 31 December 2021

The Press Office of the Polish Ministry of Finance has announced that the Ministry of Finance is currently working on a decree to defer the introduction of the withholding tax (WHT) pay-and-refund regime. This new regime would replace to a large extent the current relief at source system.

Based on the information published today (20 May), entry into force of the pay-and-refund system will be deferred by an additional six months to 31 December 2021. It is not known at this time when the deferral will be officially confirmed by publication of the noted decree, however, it is expected to be issued before the end of June 2021.

Simultaneously, the Ministry of Finance confirmed, that work on the new legislation, which will amend the regulations regarding WHT collection (primarily, in relation to the pay-and-refund regime) is progressing and the provisions that will enter into force after the deferral period ends will include the relevant amendments.

For more information on the pay-and-refund system, see EY Global Tax Alert, Poland defers certain provisions of new withholding tax reform to 1 January 2021, dated 24 June 2020.


For additional information with respect to this Alert, please contact the following:

EY Doradztwo Podatkowe Krupa sp.k., Warsaw

EY Doradztwo Podatkowe Krupa sp.k., Wroclaw

Ernst & Young LLP (United States), Polish Tax Desk, New York