A tax residence certificate confirms in which country you or your company are taxed as residents. In 2026 it is still crucial for withholding tax and foreign income. Without a valid certificate you will often pay more tax than necessary.
What is a tax residence certificate?
It is an official confirmation of your place of residence or seat for tax purposes, issued by the tax authority of a given country.
In Polish PIT and CIT acts the tax residence certificate is defined in statutory provisions. For an individual it confirms the place of residence for tax purposes. For a company it confirms the tax seat. The document indicates in which country you have unlimited tax liability, meaning where you report worldwide income.
You can find the current text of the Personal Income Tax Act in the Journal of Laws. Source: Journal of Laws 2025 item 163 – PIT Act.
When do you need a tax residence certificate in 2026?
You need it if you want to apply a double tax treaty or a reduced withholding tax rate.
If you pay for services, interest, licences or dividends to a foreign entity, the Polish tax office treats you as a withholding tax remitter. To apply a lower rate or an exemption you must have the counterparty’s tax residence certificate. Similarly, when you receive a payment from abroad you often need to present your Polish certificate.
Payments from Poland abroad and withholding tax
- You pay for intangible services to a company from another country.
- You pay interest or licence fees to a foreign entity.
- You pay dividends to a shareholder who is a non‑resident in Poland.
In each of these situations the counterparty’s tax residence certificate may allow you to apply a double tax treaty instead of the domestic flat withholding tax rate.
Foreign income of a Polish tax resident
- You work or provide remote services for a foreign employer or client.
- You receive dividends or interest from foreign companies or accounts.
- You are a partner in a foreign company and pay out profits to yourself.
In such cases a foreign payer may require your Polish certificate to apply the correct double tax treaty. Without the document they will often withhold a higher tax rate, which is not always easy to recover.
What information should a tax residence certificate contain?
It must clearly indicate the taxpayer, the state of residence and the period covered.
The law does not impose a single template, but tax authorities’ practice is quite uniform. Usually the certificate contains basic identification data and information that the taxpayer has a place of residence or seat for tax purposes in a given country.
Typical elements of a tax residence certificate
- full company name or individual’s first and last name,
- registered office or residential address,
- tax identification number in that country,
- indication of the country of tax residence,
- period covered by the certificate or date on which residence is confirmed,
- date of issue and stamp or signature of the tax authority.
How long is a tax residence certificate valid in 2026?
The law does not set one fixed validity period, but in practice a period of up to 12 months is usually accepted.
If the certificate refers to a specific tax year, it is treated as valid for that year, provided the data has not changed. If it only shows the date of issue, authorities and payers usually rely on it for 12 months from that date. If the counterparty’s tax residence changes earlier, you must obtain a new certificate.
Example practice of using a certificate
| Type of certificate | Scope of confirmation | Typical period of use |
|---|---|---|
| Certificate with a tax year indicated | Residence for the indicated year | Entire indicated year if data is still correct |
| Certificate with issue date only | Residence on the issue date | Up to 12 months from the issue date |
| Certificate with a specific period “from–to” | Residence in the indicated period | Period indicated in the document |
How to obtain a Polish tax residence certificate CFR‑1?
You file an application with the tax office competent for your place of residence or seat, preferably online via the e‑Tax Office.
CFR‑1 tax residence certificates can be obtained by individuals and companies that are Polish tax residents. An application submitted via the e‑Tax Office is free of charge and the office generally has 7 days to issue the certificate. A paper or ePUAP application requires a stamp duty of PLN 17 per certificate.
Ways to file a CFR‑1 application in 2026
| Submission method | Stamp duty | Standard processing time |
|---|---|---|
| e‑Tax Office (online) | PLN 0 | up to 7 days |
| ePUAP with an attached application | PLN 17 | up to 7 days |
| paper form at the office or by post | PLN 17 | up to 7 days from filing a complete application |
You can find a detailed instruction on how to obtain the certificate on the website of the Ministry of Finance. Source: podatki.gov.pl – tax residence certificate CFR.
If you want someone to handle the application for you, Progress Holding can prepare the form, the power of attorney and deal with the tax office. This is especially convenient for foreigners who are just learning the Polish tax system.
How to safely use foreign tax residence certificates?
You must check whether the certificate is authentic, up to date and fits the type of payment you make.
Polish tax authorities require the remitter to exercise due care when applying exemptions or reduced withholding tax rates. This means the document alone is not enough. You should verify whether the data in the certificate matches invoices, the contract and the actual way your counterparty operates.
Basic steps to verify a counterparty’s certificate
- Check whether the certificate was issued by the tax authority of the residence state.
- Compare the certificate data with the data on the invoice and in the contract.
- Pay attention to the period covered by the certificate.
- Check whether the payment falls within the relevant double tax treaty.
- Archive the document so that you can easily present it during an audit.
Group tax residence certificates in 2025–2026
In recent years tax authorities have confirmed that group tax residence certificates are acceptable for several entities within the same capital group. Such a certificate can be useful when dealing with large multinational groups.
The condition is that each entity must be clearly indicated in the document. You must also check that the payments meet the conditions of the relevant double tax treaty and that the data in the certificate is still valid on the payment date.
How does it work in practice? Progress Holding experience
From our perspective, tax residence certificates usually become an issue only during an audit or with the first significant payment abroad.
Based on more than 400 cases related to withholding tax and foreign income that I have handled with the Progress Holding team in 2023–2025, we see several repeating mistakes. First, remitters withhold tax “just in case” because they do not have a certificate, even though they could obtain one. Second, they use an old certificate that no longer covers the relevant year. Third, they apply an exemption based on a scan or an email statement instead of a formal document from a tax authority.
In practice we often start with an audit of documents and payments. Then we tidy up tax residence certificates, prepare a due diligence procedure and templates of requests for counterparties. Thanks to this the client has clear rules on when to request a new certificate and which documents to keep in tax files.
Frequently asked questions
Does a tax residence certificate always have to be in paper form?
No. Many countries issue certificates in electronic form. The important point is that the document comes from a tax authority and meets the formal requirements of that country.
Can I use a scan of a tax residence certificate?
As a rule, tax authorities accept scans or copies if their authenticity is not in doubt. For large withholding tax amounts it is safer to have an original or an electronic document with a qualified seal.
Do I need to obtain a new certificate every year?
In most cases yes, especially if the document does not clearly indicate the period of validity. For recurring payments the standard is to update the certificate every 12 months or more often when the taxpayer’s situation changes.
How can I obtain a certificate from a foreign counterparty?
The simplest way is to include an obligation to provide an up‑to‑date certificate in the contract or order. The counterparty then applies to its tax office and sends you the document, usually in the local language or in English.
Can Progress Holding help with tax residence and certificates?
Yes. We help obtain the Polish CFR‑1 certificate and verify foreign documents. We can also design a simple WHT procedure for your company so that the accounting team knows when to request a certificate and how to archive it.
The tax residence certificate in 2026 is a small formal document that often decides whether you pay tax once or twice. It is worth treating it as a basic tool for organising cross‑border settlements, not just “another piece of paper for the file”. Need professional support? Contact us at Progress Holding at +48 603 232 418 or office@progressholding.pl.
