Tax management

In the area of taxation, especially in the context of international relations, the issue of the application of tax preferences often arises. This concerns, among other things, a situation in which there is an excess of PLN 2,000,000 in payments to foreign entities. Then, according to tax law, it is the payer’s duty to withhold withholding tax (WHT) at the standard rate. However, there is an instrument that makes it possible to exclude this obligation – this is a tax preference opinion. Is it effective and when is it worth using such an option? What are the pros and cons of this option?

In the corporate world, withholding tax (WHT), is often an unavoidable cost associated with doing business. However, there are certain mechanisms that can allow to reduce this burden, including tax preferences. When applying these preferences, the key is to file the right applications and meet specific conditions, which is not always easy in practice.