Withholding tax (WHT)

Withholding tax (WHT)

A tool to properly manage the due diligence obligation

How does WHT Navigator work

WHT Navigator is a digital tool developed by PwC that will help you maintain the due diligence as required by the new Certification process. It helps to effectively gather required information from counterparties. It can be used by both the withholding tax remitters and the taxpayers.

Withholding tax - changes in the regulations regarding collection of withholding tax

Who is affected?
  • Taxpayers, in particular holdings, service providers, financing and licensing entities within and outside tax groups.
  • Tax payers in the process of collection and refund of withholding tax.
What are the provisions of new regulations?
  • Personal liability of taxpayers (board members) due to the impact on cash flows. In particular, fines and other penalties, including imprisonment as described in the Fiscal Penal Code.
  • Tax payers will be responsible for the completeness of the documentation and the correctness of the facts established during the certification process.
Certification
  • The mechanism allows tax remitters not to collect withholding tax on payments below PLN 2 million per year, provided that they exercise proper due diligence.
  • The remitter has to go through a certification process, the criteria of which have not yet been defined by the legislator.
  • The certification process will require in particular:
    • Exercising due diligence (including the use of the so-called due diligence measures by the remitter).
    • Collection and verification of source documents.
    • Verification of the status of the beneficial owner and its real activity in the country of its seat.
Possible issues?
  • Personal liability, in particular fines and other penalties, including imprisonment, provided for in the Fiscal Penal Code.
  • A fine of 10% - 30% of the tax base if the tax office challenges the results of the certification process during a tax audit.

Functionalities

WHT Navigator includes various key functionalities that allow for the most accurate verification of payments from the perspective of the obligations arising from the withholding tax regulations, and in particular the management of the due diligence obligation.​

view_moduleModularity

The tool is divided into modules that allow it to be adapted to any specific situation of the tax remitter or the taxpayer.

searchVerification of services

In terms of the obligation to collect withholding tax. The tool includes the catalog of intangible services.

settingsBO statement

The tool helps to generate a beneficial owner statement tailored to the situation of both the tax remitter and the taxpayer.

assignmentPreparation of documentation

The tool helps to gather all the documents needed to demonstrate due diligence procedures.

Benefits

The tool allows you to effectively demonstrate compliance with the due diligence obligation. The convenient form of MS Excel does not require installation.​

Security

The product is based on the current legal status.

Favorable price

The price depends on the number of modules.

Cheaper after a year

Discount for each subsequent year of use - minus 50%.​

Agata Oktawiec

WHT Navigator allows to quickly identify the client's obligations when making payments to non-residents, while ensuring due diligence required by the new withholding tax regulations.

Agata Oktawiec, Partner at PwC Polska

Pricing

Single module
1,5K EURAnnual fee
  • For example, payments for services exceeding PLN 2 million, made to unrelated entities that are to be protected under the DTT.
Additional 3 modules (up to 4 in total)
500 EUR each2 - 3K EUR in total
  • Annual fee
Additional 5 modules (9 in total)
500 EUR each3,4 - 5K EUR in total
  • Annual fee
  • 10th and subsequent modules will be available free of charge

Contact us

If you want to support the payment verification and at the same time fulfill the due diligence obligation, leave your details below.

Our experts will contact you and help you choose the WHT Navigator module that best suits your company's model.

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