Poland: withholding tax on mortgage bonds no longer applicable
Clearstream Banking1 would like to inform customers that local depository Citi Handlowy (CITI) confirmed that no withholding tax must be withheld on discounts and interests of Polish mortgage bonds paid to foreign investors.
Effective
immediately
no withholding tax will be applied to interest payments and discounts on Polish mortgage bonds paid to Clearstream Banking, and without any due diligence nor certification requirements.
Impact on customers
From now on, all income payments from mortgage bonds will be paid on a gross basis to Clearstream Banking and subsequently to Clearstream Banking’s customers.
Final beneficial owners are not required to provide any tax documentation to prove their residency and obtain the payment at 0%.
Polish residents are also being paid on a gross basis, however they must comply with their tax obligations and seek the advice of their own tax advisors to assess the need to declare income in their annual tax return.
Important note: the above provisions do not apply to Polish mortgage bonds issued before 1 January 2015 and for which the issuers are withholding agents.
Further information
All forms can be found on the Clearstream website under Tax Forms to use - Poland.
For further information, customers may contact Clearstream Banking Client Services, their Relationship Officer or Tax Help Desk.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.