On 13 October 2026, the Polish Ministry of Finance and the National Revenue Administration (KAS) confirmed that from 1 January 2027, all matters concerning withholding tax (podatek u źródła) on income paid to individuals (non-corporate taxpayers) will be centralized exclusively in the Lublin Tax Office (Lubelski Urząd Skarbowy). This major administrative reform consolidates jurisdiction previously scattered across multiple local tax offices, aiming to improve consistency in applying the Polish Personal Income Tax Act (PIT Act) and relevant double tax treaties. The centralization covers withholding on dividends, interest, royalties, director’s fees, and employment income paid to non-resident individuals. Payers (both domestic and foreign entities with Polish source income) must redirect all withholding tax returns, refund applications, and correspondence to Lublin. The change does not alter substantive tax rates or treaty benefits but streamlines administration and audit focus.
Key Takeaways
- Single Point of Compliance: All withholding tax obligations for individual recipients — including monthly declarations (PIT-8AR), annual summaries, and treaty benefit claims — must be filed with the Lublin Tax Office, regardless of the payer’s location in Poland.
- Enhanced Treaty Application Consistency: Centralization enables specialized teams to uniformly interpret treaty residence certificates and beneficial ownership requirements, reducing divergent rulings that previously caused disputes.
- Transition Actions Required: Payers should update their payroll and accounts payable systems by December 2026 to reflect the new jurisdiction, and ensure agents or fiduciaries are notified to avoid misdirected filings and potential penalties.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement