Another Success in Withholding Tax Proceedings

Penteris is the Transfer Pricing Law Firm of the Year (ITR Europe Tax Awards 2026).

Our tax team has secured a package of favourable withholding tax opinions for a foreign holding company operating in the commercial real estate sector.

The opinions safeguard our client’s ability to apply withholding tax exemptions to multimillion dividend and interest payments made by Polish real estate companies to their foreign parent. This is an area that the tax authorities have scrutinised particularly closely for several years, especially when verifying beneficial owner status and compliance with business substance requirements.

The case was particularly demanding, not only because of the scale of the payments but also because of the authorities’ strict stance on holding structures. The successful outcome of all the proceedings was made possible by our team’s many years of experience in international tax advisory, our extensive practice in withholding tax projects, and the arguments we have developed over time on holding companies, beneficial owner status, and exemptions under domestic law and EU regulations. The work also required a blend of tax and real estate expertise.

Throughout the proceedings, the authorities fully agreed with our arguments and confirmed that all requirements for the exemptions were met for both dividends and interest. As a result, our client can make the payments covered by the opinions over the coming years without relying on the pay-and-refund mechanism, which will considerably simplify its tax settlements, reduce administrative risk, and improve liquidity.

“What a fantastic result for our client,” said partner and Head of Tax Piotr Prokocki. “We’re so grateful for the high level of trust bestowed upon us.”

This outcome is a further example of our effective support in the most complex withholding tax proceedings for international groups investing in the Polish commercial real estate market.