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Challenges in submitting the WH-OSC declaration

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​​​​​​​​​​​by Beata Żaczkiewicz-Małecka

28 January 2025


The withholding tax (WHT) pay & refund mechanism has been in place since 2022.

It applies to payments of dividends, interest and royalties to an associated enterprise if they exceed 2 million zloty in a single tax year. The pay & refund procedure consists of two steps: withholding tax is collected first and then the withholding agent or the taxpayer may apply for its refund. 

WH-OSC declaration


The WH-OSC declaration is an alternative to the lengthy tax refund procedure. Once you file it properly and have the complete documentation, the withholding agent may enjoy tax preferences even if the total payments exceed the threshold of 2 million zloty. Yet, you need to exercise due care when you submit such a declaration.

Withholding tax has been attracting increased interest among revenue authorities for quite some time and more and more often they tend to challenge the declarations. Withholding agents who have submitted incorrect declarations are required to pay tax on payments exceeding 2 million zloty plus interest on tax arrears. 

Who signs the WH-OSC form?


The form may be signed only by the entity's manager in the meaning of the Accounting Act. If the entity is managed by a multi-member body – by a designated body member. The declaration may not be signed by an attorney.

In practice, the withholding agent is often represented by several management board members. In such a case, remember that even though the CIT Act does not specify explicitly how the board members should be designated, it is safest to appoint the board member by means of a resolution.

If you fail to comply with the statutory requirements, you will lose the right to enjoy the exemption or tax preferences under tax treaties. That is why it is worth paying attention to the key aspects affecting the correctness of the declaration, especially the need to have the it signed in accordance with the rules of representation. 

Trust the experts


At Rödl & Partner we offer assistance in preparing the WH-OSC declarations and advice on all aspects of withholding tax. If you need support, you are welcome to contact​ us.​

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