Tax Treaty Case Law around the Globe 2016
1. Aufl. 2017
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S. 275Chapter 23 Poland: Beneficial Ownership of Interest in the Context of Cash Pooling
Karolina Tetlak
23.1. Introduction
This chapter will discuss the decision of the Supreme Administrative Court of 11 June 2015, II FSK 1518/13. The issue in this case was the beneficial owner of interest in a cash pooling structure. The Court’s decision considered whether the pool leader should be considered the beneficial owner of interest received under the structure and whether a company established in Poland should withhold tax under the DTC Luxembourg-Poland.
Pursuant to article 3 of the Corporate Persons’ Income Tax Act of 26 July 1991 (CPITA), taxpayers are subject to corporate income tax (CIT) on all of their income, regardless of where its source is located, if they have their registered seat or management board in the territory of the Republic of Poland. Non-residents are liable to CIT only on income derived from the territory of Poland. A company is not resident in Poland if it is not incorporated or managed in Poland.
Business income is taxed at the rate of 19 % of net income. The withholding tax rate applicable to interest and royalties received by non-residents in Poland is 20 % of gross inco...