Poland: Procedure for exemption in the 2024 bonds withholding tax regime – Reminder
Clearstream Banking1 reminds clients that, as of 1 January 2024, the following Polish bonds are eligible to an exemption of withholding tax:
- PLN-denominated mortgage bonds
- All types of T-bonds (irrespective of their issuance date): with respect to legal entity beneficial owners only
- EUR-denominated mortgage bonds: with respect to legal entity beneficial owners and non-resident individuals only
The exemption available in relation to PLN-denominated mortgage bonds is unconditional:
Beneficial owner type | |||
Securities type | Legal entity | Individual | Undisclosed |
| 0% | 0% | 0% |
Regarding all other bond types, the exemption is based on the disclosure of the actual beneficial owner type as outlined in the relevant rate table below:
Beneficial owner type | |||
Securities type | Legal entity | Individual | Undisclosed |
| 0% | 0% (non-resident) 19% (resident) | 20% |
| 0% | 19% | 19% |
| 20% | 19% | 20% |
Impact on clients
Exemption at source
Investors wishing to benefit from an exemption (relief) at source of Polish withholding tax on eligible securities must provide the following documentation by the prescribed deadline as reflected in the Swift notification sent by Clearstream Banking ahead of the payment:
- For T-bonds: A completed One-Time Certificate for Polish T-bonds (OTC) duly signed by the client; or
- For EUR-denominated mortgage bonds: A completed One-Time Certificate for Polish EUR-denominated mortgage bonds (OTC) duly signed by the client; or
- For any other type(s) of Polish bonds: A completed One-Time Certificate for Polish debt securities (OTC) duly signed by the client.
In all OTC types referred to above, the client shall specify among other items whether or not it is the sole beneficial owner of the Polish eligible securities held in the account. This information must be provided before the first income/redemption payment and remains valid until revoked. Any changes to any details must be communicated in a new OTC.
For all types of Polish bonds, the following information must be provided:
- A Power of Attorney (PoA) if the documentation is signed by a third party. If several parties are involved, the full chain of PoAs must be provided; and
- A per-payment instruction for each applicable tax rate provided via Swift (formatted MT565) or Xact Web Portal message that includes:
- Client account number
- ISIN
- Corporate action reference ID
- Payment date
- Total holding of eligible securities
- Holding instructed
- Requested tax rate and
- Beneficial owner type (legal entity or individual).
The beneficial owner per-payment instruction must be provided ahead of each interest payment by any clients who have no standing instruction in place (OTC box A).
Note that relief at source and quick refund services are subject to a specific due diligence process in relation to non-exempt debt securities (T-bills, BGKs, BFGs, corporate bonds and municipal bonds), only when their beneficial owner is a legal entity. When a due diligence process applies, clients are required to provide – in addition to the above:
- a certificate of tax residence (to be renewed annually),
- a copy of its company establishment document(s) (notarised and apostilled),
- a copy of its professional activity license (if relevant – notarised and apostilled), and
- the relevant Statement form (from “Statement A" to “Statement F”) as made available in the Tax Forms to use – Poland section of the market taxation guide.
Clearstream Banking will continue to monitor the Polish market and will provide further information as it becomes available.
Further information
For further information, please contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or your Relationship Officer.
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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 clients using Creation accounts), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.