Dividend tax in Poland – regulations, rates and practical aspects
28 August 2025
Dividend tax in Poland is a special type of withholding tax (WHT) collected at the time of payment of profits by a company to its partners or shareholders. There is no separate tax exclusively for dividends – they are treated as taxable capital income.
In practice, this means that both individuals and companies receiving dividends earn taxable income, and the obligation to collect and transfer it to the tax office rests with the paying entity.
What is a dividend and when does the right to pay it occur?
A dividend is a portion of a capital company’s profit allocated for distribution among shareholders. The right to pay dividends arises after:
- approval of the financial statements,
- adoption of a resolution on the distribution of profit by the shareholders’ meeting or general meeting.
Although, as a rule, payments can only be made from net profit, funds may also come from supplementary or reserve capital. Alternatively, companies may, for example, redeem shares, which is similar to a dividend payment for tax purposes.
Standard dividend tax rate
In Poland, a 19% dividend tax rate applies. This is a flat-rate tax, independent of the taxpayer’s other income and not subject to the tax scale.
If a double taxation agreement (DTA) or EU regulations apply, this rate may be reduced or completely waived.
Dividend tax exemptions in the EU/EEA and Switzerland
Dividend tax exemption is possible if certain conditions set out in the Parent-Subsidiary Directive are met:
- the recipient is subject to income tax on its total income in its country,
- it does not benefit from tax exemption on its total income,
- it holds a minimum of 10% of the shares (25% in the case of Swiss companies) in the paying company,
- it has held the shares for at least 2 years (the period may be fulfilled after payment),
- it presents a valid tax residence certificate,
- it submits a statement confirming that the above conditions are met.
SAAR – anti-abuse clause for dividend tax
Since 2016, an anti-abuse clause (SAAR) has been in force in Poland. This means that dividend tax exemptions will not apply if the main purpose of the legal structure is to achieve a tax advantage and the transaction has no real economic justification.
The tax authorities may refuse the exemption if the recipient:
- does not conduct actual economic activity,
- has no employees or economic resources,
- acts solely as an intermediary company.
Practical note
According to the explanations of the Ministry of Finance of 3 July 2025, in the case of dividends as ‘passive payments’, the application of WHT preferences (exemptions, reduced rates) generally requires verification of the status of the beneficial owner.
At the same time, the case law of the Supreme Administrative Court remains inconsistent:
- Judgment of the Supreme Administrative Court of 9 October 2024 (II FSK 78/22) – it was stated that in the case of dividend exemption under Article 22(4) of the CIT Act, the payer is not obliged to verify the status of the beneficial owner.
- NSA judgment of 6 May 2025 (II FSK 1082/22) – the court ruled that the payer must verify all the conditions for the exemption, including the status of the beneficial owner of the dividend recipient.
As a result, the practice proper attention and good documentation, especially in the event of a discrepancy between the case law and the position of the Ministry of Finance.
Foreign dividends and Polish dividend tax
Dividend tax also applies to income from abroad. In the case of dividends received from other countries, it is necessary to check whether Poland has concluded a double taxation agreement (DTA) with the country in question.
- The agreement may provide for a lower tax rate (e.g. 5%, 10% or 15%) or a total exemption.
- To benefit from it, you must have a valid certificate of residence.
- If you do not have one, the full rate of 19% applies.
- Foreign dividends must also be reported in your Polish tax return, with the possibility of deducting tax paid abroad.
Company obligations when paying dividends
The company acts as a payer and is obliged to:
- collect tax on dividends,
- transfer it to the tax office by the 7th day of the month following the month in which the tax was collected,
- submit the CIT-6R declaration by the end of the first month after the end of the tax year and the IFT-2R declaration by the end of the third month after the end of the tax year,
- collect and verify the documents necessary to apply for the exemption (certificates, statements).
Additionally, if the total amount of payments to a single related entity in a tax year exceeds PLN 2 million, the ‘pay & refund’ mechanism applies. This means that, as a rule, the company collects the full withholding tax, and the taxpayer may apply for a refund or use the WH-OSC procedure or an opinion on the application of preferences.
Find out more: Pay & Refund in Poland – a complicated withholding tax (WHT) refund procedure
Dividend tax – the most common problems in practice
- No certificate of residence → automatic rate of 19%.
- Incorrect declarations → possibility of challenging the exemption.
- Holding structures without real activity → risk of SAAR application.
- Non-cash dividends (e.g. in the form of real estate) → taxation according to the market value of the benefit.
Frequently Asked Questions
1. How much is the dividend tax in Poland?
The dividend tax in Poland is a flat rate of 19%. It is collected by the company at the time of payment and transferred to the tax office, so the investor does not have to pay the tax in Poland themselves. This rate applies to both individuals and companies, unless a double taxation agreement or EU regulations allowing for exemption from this tax apply.
2. Do I have to settle the tax on dividends myself?
In the case of dividends paid by Polish companies, the investor does not settle the tax themselves, because the company collects and pays the 19% tax on dividends as the payer. This tax is final and does not need to be added to the annual PIT-38 form. The situation is different for foreign dividends, where the taxpayer is required to report the income in their annual tax return and settle the tax with the possibility of deducting what was paid abroad.
3. How to settle foreign dividends in Poland?
Foreign dividends are also subject to taxation in Poland. In such a situation, the investor – as a Polish tax resident – should report them in the PIT-38 form and apply the proportional tax deduction method. This means that tax paid abroad can be deducted from the tax due in Poland, but only within the limits set by the regulations. A tax residence certificate is required for correct settlement.
4. Is there a dividend tax exemption?
Yes, a dividend tax exemption is possible, but only in certain cases. It applies to companies based in Poland, another EU/EEA country or Switzerland that hold a certain percentage of shares for the required period (usually 10% of shares for 2 years, in the case of Switzerland 25%). In order to take advantage of this exemption, you must document your situation, including by presenting a tax residence certificate and relevant statements.
5. When does the obligation to pay tax on dividends arise?
The tax obligation arises at the moment of dividend payment to shareholders. The company acts as the tax remitter and is obliged to transfer the collected tax to the tax office by the 7th day of the month following the month of collection. The investor receives the net amount, i.e. after tax deduction. In addition, the company is required to prepare the relevant tax returns and annual information for the tax office and recipients.
6. Do dividends in kind also have to be taxed?
Yes, dividends in kind, i.e. in the form of real estate, goods or other assets, are also subject to taxation. In this case, the dividend tax is calculated on the market value of the benefit received. This means that even if the investor does not receive cash but items of a certain value, the tax authorities treat them as if they were money and tax must be paid on them at the same rate.
7. Can a natural person benefit from dividend tax exemption?
Tax exemptions on dividends are available only to companies within the EU/EEA and Switzerland that meet certain shareholding and documentation requirements. Natural persons are not entitled to dividend tax exemption on this basis. However, they may benefit from reliefs provided for in double taxation agreements, which usually reduce the withholding tax rate levied abroad.
8. What documents are required to benefit from the dividend tax exemption?
In order to apply the exemption, it is necessary to have the appropriate documentation. The basis is the tax residence certificate of the dividend recipient, which confirms their tax domicile. In practice, when using the WHT preference, the payer should also verify and document the status of the ‘beneficial owner’ (BO) of the recipient, with the proviso that the Supreme Administrative Court’s case law is not uniform. A statement of compliance with the conditions for exemption and documents confirming the required share in the capital and the period of its ownership are also necessary. Without these documents, the paying company is not entitled to apply the exemption and must collect the full 19% tax.
9. Can the dividend tax be reduced?
Yes, the dividend tax does not always have to be 19%. It is possible to apply a lower rate or even a total exemption if this results from a double taxation agreement or EU regulations. However, this is conditional on having the appropriate documentation, such as a tax residence certificate and statements confirming the right to preferential treatment. Without this, the paying company will collect the full tax.
10. What is the pay & refund mechanism for dividend tax?
The pay & refund mechanism is applied when the total payments to a single related entity exceed PLN 2 million in the taxpayer’s tax year. In such a case, the company generally collects tax at statutory rates on the excess above the threshold, and the recipient may apply for a refund. Preferences may be applied ‘in advance’, inter alia, on the basis of an opinion on the application of preferences or, in certain situations and at the taxpayer’s risk, after submitting a WH-OSC declaration. This mechanism reduces the risk of abuse and enforces careful verification of documentation.
Dividend tax in Poland is an important element of the tax system, directly affecting individual and institutional investors. The standard rate of 19% applies in most cases, although international agreements and EU regulations may provide more favourable terms.
In practice, the most important thing is to have the correct documentation (certificates of residence, declarations) and to prove that the recipient is the actual owner of the dividend. Proper application of these rules minimises tax risk and allows you to take advantage of the available preferences.
If you have any questions regarding dividend tax or need support in optimising your tax settlements, getsix® can help. We analyse your tax situation and provide comprehensive advice tailored to your individual needs to ensure compliance and tax security.
Legal basis:
- Act of 15 February 1992 on corporate income tax (Journal of Laws 1992 No. 21 item 86, as amended)
- Act of 26 July 1991 on personal income tax (Journal of Laws 1991 No. 80 item 350, as amended)
- Council Directive 2011/96/EU of 30 November 2011 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States
If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the HLB Poland website.
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