Introduction of omnibus accounts into the Polish tax system

As of January 1, 2012 new regulations introducing the so-called “omnibus accounts” entered into force in Poland. These new regulations, aside from amending the law on turnover of fi nancial instruments and few other acts, would also amend WHT regulations included in the Polish CIT Law and Polish PIT Law, as well as the Tax Code. The proposed changes demonstrate that the tax authorities are aware of problems related to determining tax residency and benefi cial owner status of entities receiving interest and dividends from Poland (which are subject to WHT in Poland). Simultaneously, it should be noted that the proposed changes do not solve all the interpretation issues concerning taxation of payments made through omnibus accounts.

Below we outline the most important changes in the CIT Law, resulting from implementation of omnibus accounts. Those changes will affect payments made on securities held in securities accounts or omnibus accounts:Under the new regulations the entity carrying the omnibus account may become in certain situations the WHT remitter ;  

• The new regulations implement some changes to the tax reporting obligations (e.g. IFT-2R/IFT-2 report) and tax return forms (e.g. CIT 10-Z form) ;
• New regulations redefi ne the tax base and the tax point in WHT and preclude the possibility of automatic application of reduced WHT rates or WHT exemption based on applicable double tax treaties or provisions implementing the EU Directives.  

Given the above companies from FS sector should consider preparing for these changes in the law. In particular, entities which may under new regulations act as tax remitters, should consider implementing appropriate changes to their IT systems and internal procedures.