{"id":6024,"date":"2026-03-03T10:52:47","date_gmt":"2026-03-03T09:52:47","guid":{"rendered":"https:\/\/progressholding.pl\/pl\/?p=6024"},"modified":"2026-03-04T11:16:40","modified_gmt":"2026-03-04T10:16:40","slug":"podatek-od-dywidend-wyplacanych-za-granice-stawki-wht-zwolnienia-i-jak-prawidlowo-wypelnic-ift-2r","status":"publish","type":"post","link":"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/","title":{"rendered":"Withholding tax on dividends paid abroad \u2014 WHT rates, exemptions and how to correctly file IFT-2R"},"content":{"rendered":"<p><\/p>\n<article>\n<p>A Polish company paying a&nbsp;dividend to a&nbsp;foreign shareholder must withhold 19% tax at source (WHT). This rate can be reduced to 5\u201315% under an applicable double tax treaty (DTT) or eliminated entirely if the recipient meets the conditions of Article 22(4) of the CIT Act. In every case, the payer files an annual IFT-2R information return with the Lublin Tax Office.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#what-is-the-withholding-tax-rate-on-dividends-paid-abroad\" >What is the withholding tax rate on dividends paid abroad?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#what-wht-rates-do-double-tax-treaties-provide\" >What WHT rates do double tax treaties provide?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#sample-wht-rates-on-dividends-under-selected-dtts\" >Sample WHT rates on dividends under selected DTTs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#when-is-a-dividend-paid-abroad-exempt-from-tax\" >When is a&nbsp;dividend paid abroad exempt from tax?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#5-conditions-for-the-dividend-exemption\" >5 conditions for the dividend exemption<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#documents-required-to-apply-the-exemption\" >Documents required to apply the exemption<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#how-does-the-pay-and-refund-mechanism-work-for-dividends-above-pln-2-million\" >How does the pay-and-refund mechanism work for dividends above PLN 2 million?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#how-it-works-in-practice\" >How it works in practice<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#what-is-ift-2r-and-who-must-file-it\" >What is IFT-2R and who must file it?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#the-obligation-to-file-ift-2r-applies-in-all-scenarios\" >The obligation to file IFT-2R applies in all scenarios<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#how-to-correctly-complete-ift-2r-for-2025\" >How to correctly complete IFT-2R for 2025<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#step-by-step-%e2%80%94-completing-ift-2r\" >Step by step \u2014 completing IFT-2R<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#deadlines-and-filing-method\" >Deadlines and filing method<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#what-is-the-difference-between-ift-2r-and-cit-10z\" >What is the difference between IFT-2R and CIT-10Z?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#what-does-this-look-like-in-practice-progress-holdings-experience\" >What does this look like in practice? Progress Holding&#8217;s experience<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#5-most-common-errors-%e2%80%94-progress-holding-data\" >5 most common errors \u2014 Progress Holding data<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#how-much-does-wht-and-ift-2r-handling-cost-at-progress-holding\" >How much does WHT and IFT-2R handling cost at Progress Holding?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#frequently-asked-questions\" >Frequently asked questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#do-i-need-to-file-ift-2r-if-the-dividend-is-exempt-from-wht\" >Do I need to file IFT-2R if the dividend is exempt from WHT?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#where-do-i-file-ift-2r-%e2%80%94-my-local-tax-office-or-lublin\" >Where do I file IFT-2R \u2014 my local tax office or Lublin?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#can-a-foreign-individual-benefit-from-the-article-224-exemption\" >Can a&nbsp;foreign individual benefit from the Article 22(4) exemption?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#what-happens-if-i-do-not-file-ift-2r-on-time\" >What happens if I do not file IFT-2R on time?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#how-do-i-calculate-whether-i-have-exceeded-the-pln-2-million-threshold-for-pay-and-refund\" >How do I calculate whether I have exceeded the PLN 2 million threshold for pay and refund?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/progressholding.pl\/en\/withholding-tax-on-dividends-paid-abroad-wht-rates-exemptions-and-how-to-correctly-file-ift-2r\/#can-i-sign-ift-2r-with-a-trusted-profile-profil-zaufany\" >Can I sign IFT-2R with a&nbsp;trusted profile (profil zaufany)?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"what-is-the-withholding-tax-rate-on-dividends-paid-abroad\"><\/span>What is the withholding tax rate on dividends paid abroad?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The standard WHT rate on dividends paid to non-residents is 19% of gross income. This follows from Article 22(1) of the Corporate Income Tax Act of 15 February 1992 (<a href=\"https:\/\/isap.sejm.gov.pl\/isap.nsf\/DocDetails.xsp?id=WDU19920210086\" target=\"_blank\" rel=\"noopener\">Journal of Laws 2025, item 278<\/a>). The tax applies to payments made to both foreign legal entities and individuals.<\/p>\n<p>The company paying the dividend acts as the tax remitter. It withholds the tax at the time of payment and transfers it to its micro tax account by the 7th day of the month following the payment. The taxpayer (the foreign shareholder) receives the net amount \u2014 reduced by the WHT withheld.<\/p>\n<p>From our experience at Progress Holding, many business owners are unaware of the obligation to withhold WHT on dividends paid to a&nbsp;foreign shareholder. Failure to withhold exposes the remitter to fiscal criminal liability and late-payment interest.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"what-wht-rates-do-double-tax-treaties-provide\"><\/span>What WHT rates do double tax treaties provide?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Double tax treaties (DTTs) concluded by Poland reduce the WHT rate on dividends \u2014 most commonly to 5%, 10% or 15%, depending on the recipient&#8217;s country of residence and the size of their shareholding in the paying company.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"sample-wht-rates-on-dividends-under-selected-dtts\"><\/span>Sample WHT rates on dividends under selected DTTs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<thead>\n<tr>\n<th>Recipient&#8217;s country of residence<\/th>\n<th>WHT rate \u2014 company (\u2265 10% shareholding)<\/th>\n<th>WHT rate \u2014 other recipients<\/th>\n<th>DTT legal basis<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Germany<\/td>\n<td>5%<\/td>\n<td>15%<\/td>\n<td>Convention of 14 May 2003<\/td>\n<\/tr>\n<tr>\n<td>USA<\/td>\n<td>5%<\/td>\n<td>15%<\/td>\n<td>Treaty of 8 October 1974<\/td>\n<\/tr>\n<tr>\n<td>United Kingdom<\/td>\n<td>0% (\u2265 10%)<\/td>\n<td>10%<\/td>\n<td>Convention of 20 July 2006<\/td>\n<\/tr>\n<tr>\n<td>Ukraine<\/td>\n<td>5%<\/td>\n<td>10%<\/td>\n<td>Convention of 12 January 1993<\/td>\n<\/tr>\n<tr>\n<td>Hungary<\/td>\n<td>10%<\/td>\n<td>10%<\/td>\n<td>Convention of 23 September 1992<\/td>\n<\/tr>\n<tr>\n<td>No DTT<\/td>\n<td>19%<\/td>\n<td>19%<\/td>\n<td>Article 22(1) of the CIT Act<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>To apply a&nbsp;reduced treaty rate, the remitter must hold a&nbsp;valid tax residency certificate for the recipient. Without this document, the paying company must apply the full 19% rate. The current list of DTTs concluded by Poland is available at <a href=\"https:\/\/www.podatki.gov.pl\/podatkowa-wspolpraca-miedzynarodowa\/wykaz-umow-o-unikaniu-podwojnego-opodatkowania\/\" target=\"_blank\" rel=\"noopener\">podatki.gov.pl<\/a>.<\/p>\n<p>When verifying the treaty rate, you must also account for the Multilateral Instrument (MLI), which modifies the provisions of many bilateral tax treaties. Always check the synthesised DTT text incorporating MLI changes, available on the Ministry of Finance website.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"when-is-a-dividend-paid-abroad-exempt-from-tax\"><\/span>When is a&nbsp;dividend paid abroad exempt from tax?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A dividend is fully exempt from WHT when all conditions of Article 22(4) of the CIT Act are met simultaneously. This exemption implements Council Directive 2011\/96\/EU (the Parent-Subsidiary Directive).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5-conditions-for-the-dividend-exemption\"><\/span>5 conditions for the dividend exemption<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><strong>Payer<\/strong> \u2014 a&nbsp;company with its registered office or place of management in Poland.<\/li>\n<li><strong>Recipient<\/strong> \u2014 a&nbsp;company subject to CIT on its worldwide income in Poland, another EU member state or an EEA state.<\/li>\n<li><strong>Shareholding<\/strong> \u2014 the recipient directly holds at least 10% of shares in the paying company.<\/li>\n<li><strong>Holding period<\/strong> \u2014 the shares have been held continuously for at least 2 years (the period may expire after the payment date \u2014 Article 22(4b) of the CIT Act).<\/li>\n<li><strong>No subjective exemption<\/strong> \u2014 the recipient is not exempt from tax on its entire income, regardless of the source.<\/li>\n<\/ol>\n<p>A general interpretation issued by the Minister of Finance on 20 November 2024 confirmed that the recipient&#8217;s use of an objective exemption for the dividend itself (based on the Directive&#8217;s implementation) does not breach condition 5. This is an important position for EU companies where dividends are exempt in the country of residence.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"documents-required-to-apply-the-exemption\"><\/span>Documents required to apply the exemption<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Tax residency certificate of the recipient \u2014 valid on the date of dividend payment.<\/li>\n<li>Declaration by the recipient that it is the beneficial owner of the dividend.<\/li>\n<li>Declaration by the recipient that it meets the conditions of Article 22(4) of the CIT Act (subject to tax on worldwide income, not subject to a&nbsp;subjective exemption).<\/li>\n<\/ul>\n<p>In our clients&#8217; practice, the most common problem is obtaining the tax residency certificate on time. Foreign shareholders often do not realise they must provide it before the dividend is paid. At Progress Holding, we prepare template letters to foreign shareholders in advance so that all documentation is complete on the payment date.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"how-does-the-pay-and-refund-mechanism-work-for-dividends-above-pln-2-million\"><\/span>How does the pay-and-refund mechanism work for dividends above PLN 2 million?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The pay-and-refund mechanism requires withholding WHT at 19% on the excess above PLN 2 million per year, even if the conditions for an exemption or reduced treaty rate are met. This applies to payments made to related foreign entities.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"how-it-works-in-practice\"><\/span>How it works in practice<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If the total passive payments (dividends, interest, royalties) to a&nbsp;single related foreign entity exceed PLN 2 million in a&nbsp;tax year, the remitter has two options:<\/p>\n<ul>\n<li><strong>Option A \u2014 withhold and reclaim.<\/strong> The company withholds 19% WHT on the excess above PLN 2 million, then applies for a&nbsp;refund of the overpayment. The refund requires a&nbsp;complete set of documentation proving entitlement to the preference.<\/li>\n<li><strong>Option B \u2014 apply the preference upfront.<\/strong> The company applies the exemption or reduced rate, provided it files a&nbsp;WHT-OSC declaration or holds a&nbsp;valid tax authority opinion on the application of the preference (valid for 36 months).<\/li>\n<\/ul>\n<p>The WHT-OSC declaration is filed by the management board of the paying company. It confirms that the company holds the documents entitling it to the preference and that it has exercised due diligence. After the end of the tax year, the board files a&nbsp;follow-up declaration confirming that the conditions were met for all payments made during the year.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"what-is-ift-2r-and-who-must-file-it\"><\/span>What is IFT-2R and who must file it?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>IFT-2R is an annual information return on income earned by CIT taxpayers that do not have their registered office or place of management in Poland. It is filed by every remitter that made payments to foreign legal entities subject to WHT during a&nbsp;given tax year.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"the-obligation-to-file-ift-2r-applies-in-all-scenarios\"><\/span>The obligation to file IFT-2R applies in all scenarios<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You must file IFT-2R regardless of whether you:<\/p>\n<ul>\n<li>withheld WHT at the domestic rate of 19%,<\/li>\n<li>applied a&nbsp;reduced treaty rate (e.g. 5% or 10%),<\/li>\n<li>applied the full exemption under Article 22(4) of the CIT Act,<\/li>\n<li>used the pay-and-refund mechanism.<\/li>\n<\/ul>\n<p>IFT-2R covers payments to legal entities only. For payments to individuals (e.g. a&nbsp;foreign shareholder who is a&nbsp;natural person), the correct form is IFT-1R, due by the end of February of the following year.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"how-to-correctly-complete-ift-2r-for-2025\"><\/span>How to correctly complete IFT-2R for 2025<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>From 1 January 2026, version 12 of the IFT-2R form applies, covering income earned from 1 January 2025. The form is available at <a href=\"https:\/\/www.gov.pl\/web\/finanse\/ift-2ift-2r\" target=\"_blank\" rel=\"noopener\">gov.pl\/web\/finanse<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"step-by-step-%e2%80%94-completing-ift-2r\"><\/span>Step by step \u2014 completing IFT-2R<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><strong>Section A \u2014 remitter details.<\/strong> Enter the paying company&#8217;s NIP (tax ID), full name and registered address. Specify the tax year covered by the return.<\/li>\n<li><strong>Section B \u2014 taxpayer (recipient) details.<\/strong> Provide the foreign entity&#8217;s full name, registered address, country of residence and tax identification number in the country of residence (TIN). Version 12 requires more detailed identification data.<\/li>\n<li><strong>Section C \u2014 income and tax.<\/strong> Enter the type of payment (dividend), gross dividend amount, the WHT rate applied (19%, treaty rate or 0% if exempt) and the amount of tax withheld.<\/li>\n<li><strong>Section D \u2014 basis for the preference.<\/strong> Indicate whether you applied the exemption (Article 22(4) CIT), a&nbsp;reduced treaty rate or the domestic rate. Enter the date of the tax residency certificate.<\/li>\n<li><strong>Signature.<\/strong> The form must be signed with a&nbsp;qualified electronic signature. IFT-2R cannot be signed with a&nbsp;trusted profile (profil zaufany) or submitted via ePUAP.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"deadlines-and-filing-method\"><\/span>Deadlines and filing method<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<thead>\n<tr>\n<th>Obligation<\/th>\n<th>Deadline for 2025<\/th>\n<th>Recipient<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>WHT payment<\/td>\n<td>By the 7th of the month following the payment month<\/td>\n<td>Remitter&#8217;s micro tax account<\/td>\n<\/tr>\n<tr>\n<td>CIT-10Z (annual WHT return)<\/td>\n<td>2 February 2026*<\/td>\n<td>Head of the Lublin Tax Office<\/td>\n<\/tr>\n<tr>\n<td>IFT-2R (annual information return)<\/td>\n<td>31 March 2026<\/td>\n<td>Head of the Lublin Tax Office + the foreign taxpayer<\/td>\n<\/tr>\n<tr>\n<td>Follow-up WHT-OSC (if applicable)<\/td>\n<td>By the end of the 2nd month after the tax year ends<\/td>\n<td>Head of the Lublin Tax Office<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>* The deadline of 31 January 2026 falls on a&nbsp;Saturday, so it shifts to 2 February 2026.<\/p>\n<p>Remember: IFT-2R must be filed electronically via the e-Deklaracje portal. You need a&nbsp;UPL-1 power of attorney authorising electronic filing. The same information must also be sent to the foreign taxpayer (the dividend recipient).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"what-is-the-difference-between-ift-2r-and-cit-10z\"><\/span>What is the difference between IFT-2R and CIT-10Z?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>CIT-10Z is a&nbsp;return showing the total amount of WHT withheld \u2014 it is filed by the remitter and reports the aggregate tax collected. IFT-2R is an information return prepared separately for each foreign taxpayer, containing details of their income and the tax withheld.<\/p>\n<table>\n<thead>\n<tr>\n<th>Feature<\/th>\n<th>CIT-10Z<\/th>\n<th>IFT-2R<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Nature<\/td>\n<td>Aggregate return<\/td>\n<td>Individual information (separate for each taxpayer)<\/td>\n<\/tr>\n<tr>\n<td>Recipient<\/td>\n<td>Head of the Lublin Tax Office<\/td>\n<td>Head of the Lublin Tax Office + foreign taxpayer<\/td>\n<\/tr>\n<tr>\n<td>Deadline (for 2025)<\/td>\n<td>2 February 2026<\/td>\n<td>31 March 2026<\/td>\n<\/tr>\n<tr>\n<td>When not required<\/td>\n<td>When no WHT was withheld (exemption applied)<\/td>\n<td>Always required \u2014 even when an exemption was applied<\/td>\n<\/tr>\n<tr>\n<td>Form version<\/td>\n<td>Version 7<\/td>\n<td>Version 12 (from 2026 for 2025 income)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"what-does-this-look-like-in-practice-progress-holdings-experience\"><\/span>What does this look like in practice? Progress Holding&#8217;s experience<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Based on our accounting services for over 400 foreign-owned sp. z&nbsp;o.o. companies at Progress Holding, we have identified the most common errors in WHT settlements on dividends.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5-most-common-errors-%e2%80%94-progress-holding-data\"><\/span>5 most common errors \u2014 Progress Holding data<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<thead>\n<tr>\n<th>Error<\/th>\n<th>Frequency<\/th>\n<th>Consequence<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>No tax residency certificate on the payment date<\/td>\n<td>38% of companies<\/td>\n<td>Obligation to apply the 19% rate instead of the preferential rate<\/td>\n<\/tr>\n<tr>\n<td>Failure to file IFT-2R when an exemption was applied<\/td>\n<td>27% of companies<\/td>\n<td>Fine of up to 180 daily rates (Article 80(1) of the Fiscal Penal Code)<\/td>\n<\/tr>\n<tr>\n<td>Missing beneficial owner declaration<\/td>\n<td>31% of companies<\/td>\n<td>Risk of the exemption being challenged during an audit<\/td>\n<\/tr>\n<tr>\n<td>Overlooking the PLN 2 million threshold (pay and refund)<\/td>\n<td>15% of companies<\/td>\n<td>Remitter liability for unwithheld tax + interest<\/td>\n<\/tr>\n<tr>\n<td>WHT payment to the wrong account<\/td>\n<td>12% of companies<\/td>\n<td>Late-payment interest until the funds are rebooked<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>We see particularly many problems in companies whose shareholders are based outside the EU. Where the Article 22(4) exemption is not available, the only option to reduce the tax is a&nbsp;DTT. Yet many remitters fail to check the bilateral treaty text or to verify the impact of the MLI on its provisions.<\/p>\n<p>We have handled hundreds of WHT settlements and know that a&nbsp;correct procedure requires advance planning. The residency certificate, declarations and DTT analysis should be ready before the dividend resolution is adopted \u2014 not after.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"how-much-does-wht-and-ift-2r-handling-cost-at-progress-holding\"><\/span>How much does WHT and IFT-2R handling cost at Progress Holding?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>At Progress Holding, we handle the entire WHT process for dividends \u2014 from DTT analysis, through documentation preparation, to filing CIT-10Z and IFT-2R. Accounting services for a&nbsp;sp. z&nbsp;o.o. covering these obligations start at PLN 799 net per month. Preparing or amending a&nbsp;single return (e.g. CIT-10Z) costs PLN 250 net. Expert consultations on dividend payment structures are PLN 350 net per session.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"frequently-asked-questions\"><\/span>Frequently asked questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"do-i-need-to-file-ift-2r-if-the-dividend-is-exempt-from-wht\"><\/span>Do I need to file IFT-2R if the dividend is exempt from WHT?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes. The obligation to file IFT-2R exists regardless of whether you withheld tax or applied an exemption. IFT-2R serves an informational function \u2014 it allows the tax authorities to monitor income flows from Poland to foreign taxpayers.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"where-do-i-file-ift-2r-%e2%80%94-my-local-tax-office-or-lublin\"><\/span>Where do I file IFT-2R \u2014 my local tax office or Lublin?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You file IFT-2R exclusively with the Head of the Lublin Tax Office (Naczelnik Lubelskiego Urz\u0119du Skarbowego w Lublinie). This is the only office competent for WHT collection from non-residents. The form is submitted electronically via the e-Deklaracje portal with a&nbsp;qualified electronic signature.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"can-a-foreign-individual-benefit-from-the-article-224-exemption\"><\/span>Can a&nbsp;foreign individual benefit from the Article 22(4) exemption?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No. The dividend exemption under Article 22(4) of the CIT Act is available only to companies subject to CIT in EU or EEA member states. Foreign individuals may only benefit from a&nbsp;reduced WHT rate under the applicable double tax treaty.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"what-happens-if-i-do-not-file-ift-2r-on-time\"><\/span>What happens if I do not file IFT-2R on time?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Failure to file IFT-2R on time is a&nbsp;fiscal misdemeanour under Article 80(1) of the Fiscal Penal Code. It carries a&nbsp;fine of up to 180 daily rates. If you file voluntarily after the deadline (voluntary disclosure), you may avoid the penalty, provided the tax office has not yet initiated proceedings.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"how-do-i-calculate-whether-i-have-exceeded-the-pln-2-million-threshold-for-pay-and-refund\"><\/span>How do I calculate whether I have exceeded the PLN 2 million threshold for pay and refund?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The PLN 2 million threshold covers the total of all passive payments (dividends, interest, royalties) made in a&nbsp;tax year to a&nbsp;single related foreign entity. The gross amount counts \u2014 before deducting WHT. The threshold applies to each related entity separately.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"can-i-sign-ift-2r-with-a-trusted-profile-profil-zaufany\"><\/span>Can I sign IFT-2R with a&nbsp;trusted profile (profil zaufany)?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No. IFT-2R must be filed exclusively via the e-Deklaracje portal and signed with a&nbsp;qualified electronic signature. Trusted profiles and the ePUAP platform are not accepted for this form. The person signing must hold a&nbsp;UPL-1 power of attorney.<\/p>\n<p>Withholding tax on dividends paid abroad requires a&nbsp;precise analysis of three regulatory layers: the Polish CIT Act, the applicable DTT and EU legislation. Every error \u2014 a&nbsp;missing certificate, overlooking the PLN 2 million threshold or failing to file IFT-2R \u2014 has real financial and criminal consequences. Correct WHT settlement is not a&nbsp;matter of filing one form but an entire process that begins before the dividend is paid.<\/p>\n<p>Need professional support with WHT on dividends? Contact us at Progress Holding: <strong><a href=\"tel:+48603232418\">+48 603 232 418<\/a><\/strong> or <strong><a href=\"mailto:office@progressholding.pl\">office@progressholding.pl<\/a><\/strong>. We have been servicing foreign-owned companies for over 10 years \u2014 we will help you avoid costly mistakes.<\/p>\n<\/article>\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>A Polish company paying a&nbsp;dividend to a&nbsp;foreign shareholder must withhold 19% tax at source (WHT). This rate can be reduced to 5\u201315% under an applicable double tax treaty (DTT) or eliminated entirely if the recipient meets the conditions of Article 22(4) of the CIT Act. In every case, the payer files an annual IFT-2R information [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":6028,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6024","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-kategorii"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/posts\/6024","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/comments?post=6024"}],"version-history":[{"count":1,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/posts\/6024\/revisions"}],"predecessor-version":[{"id":6029,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/posts\/6024\/revisions\/6029"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/media\/6028"}],"wp:attachment":[{"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/media?parent=6024"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/categories?post=6024"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/tags?post=6024"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}