
Withholding tax (WHT) is income tax which the tax remitter is required to collect because of revenue obtained by non-residents.
What payments are subject to WHT?
The new mechanism of tax collection, the so-called pay and refund mechanism, will be particularly important for taxpayers. In practice, the payer will be obliged to collect withholding tax on the excess of the amount exceeding PLN 2 million at the basic rate and pay it to the account of the appropriate tax office (PAY). Only in the next step will the taxpayer (or remitter - if it was the taxpayer who incurred the economic burden of the tax) be able to apply for its return (REFUND). It will be a real revolution!