Withholding Tax (WHT) Refunds in International Structures

Withholding tax on dividends, interest or royalties paid abroad is sometimes collected at a higher rate than results from the double taxation treaty. Such an overpayment can be recovered if the relevant formal and evidentiary conditions are met. This applies both to Polish companies paying amounts abroad and to foreign entities receiving payments from Poland.

Where does the overpayment come from?

Above a certain threshold, the Polish payer is obliged to collect withholding tax at the domestic rate, even if an international treaty provides for a lower rate or a full exemption. Applying a preferential rate immediately requires meeting strict documentation conditions. For this reason many payers, out of caution, collect the tax in full, leaving themselves a route to recover the overpayment in later proceedings.

What does the process look like?

Recovering an overpayment requires filing an application with the tax office together with the recipient's tax residency certificate, a statement on the beneficial owner of the payment and evidence of genuine business activity. For more complex structures, this is accompanied by an analysis of transfer pricing and of the beneficial owner rules.

What does legal support involve?

Analysis of whether the tax collected was justified, preparation of the application for refund of the overpayment and representation before the tax office. For international structures, additionally an assessment of the tax risk of the whole structure and recommendations on how to arrange it.

Who is this solution for?

For companies paying dividends, interest or royalties abroad and for foreign entities receiving payments from Poland who want to recover overpaid tax or make sure the rate applied is correct.