The conditions for exemption from withholding tax on dividends Article of the CIT Act notes Piotr Prokocki. Indicating the existence of such a requirement therefore constitutes a departure from the literal wording of the act, which may be regard as a violation of the principle of determining the structural elements of the tax in the act Article of the Constitution Such an interpretation is also not support by EU regulations. Importantly, the lack of the beneficial owner requirement in the case of exemption from withholding tax on dividends is not the result of incorrect implementation of EU law. The ParentSubsidiary Directive does not contain such a requirement either.
Unlike the Interest Royalties Directive
Which requires beneficial owner status for recipients of interest royalties. However, it does not apply to dividends– emphasizes Piotr Prokocki. Read also Exemption from corporate income tax of domestic dividends principles, doubts practical Taiyuan Mobile Phone Number List problems Read also The importance of the beneficial owner condition for the application of the dividend exemption from withholding tax Price for you PLN Withholding tax settlement [PRE ORDER] Jaroslaw Sekita Check WE RECOMMEND Examining the status of the beneficial owner is not part of due diligence It is therefore unjustifi to derive the requirement to examine the status of the beneficial owner from the duty of care alone.
Withholding tax the remitter should
As part of due diligence in the field of check the fulfillment of the conditions for exemption from this tax, should check the fulfillment of those conditions that result from the Act. As part of due diligence, payers cannot be requir to verify conditions not Latest Bulk SMS provid for by the legislator. It is true that some arguments can be found that would argue for excluding the right to exemption from withholding tax on dividends paid under artificial structures in which the direct recipient of the dividend is not its economic beneficial owner he is oblig to transfer the dividend immiately to another entity. Such structures may be creat in order to avoid taxation.