Tax rate
Tax on dividends in Poland amounts to 19%
Exemptions from tax on dividends in Poland
Income from dividends and other revenue from share in the profits of legal persons is exempt from income tax, if all of the following conditions are met:
- dividends is paid by Polish company
- income from dividends is earned by a company which is tax resident in Poland or other Member State of the European Union or another Member State of the European Economic Area
- a company receiving dividends directly holds no less than 10 % of shares in the share capital of the company which pay the dividend
- a company receiving dividends does not enjoy exemption from income tax on its entire income, irrespective of the sources from which the income is earned
- a company receiving dividends has held the minimal 10% amount of shares in the company that makes the payments for an uninterrupted period of two years; if a company acquire at least 10% shares, it can benefit from the exemption from the day of shares acquisition, under the condition that it will hold at least 10% of shares for an uninterrupted period of two years
Double Taxation Treaties
If dividends are received by foreign entities (natural persons/legal persons), they are subject to 19% withholding tax in Poland. However, the tax on dividends in Poland shall be determined in accordance with the respective double taxation treaty.
