Holding companies as beneficial owners and intermediaries of dividends

Many issues in an application of a tax regulation concerning a withhold tax appeared with an entry into force of an amendment to the Corporate Income Tax Act from 2019. Legal definition of a beneficial owner has generated numerous problems in applying tax exemption by holding companies, due to dispu...

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Main Author: Oskar Winnicki
Format: Article
Language:English
Published: Wydawnictwo Naukowe Uniwersytetu Mikołaja Kopernika 2024-03-01
Series:Prawo Budżetowe Państwa i Samorządu
Subjects:
Online Access:https://apcz.umk.pl/PBPS/article/view/51491/40961
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author Oskar Winnicki
author_facet Oskar Winnicki
author_sort Oskar Winnicki
collection DOAJ
description Many issues in an application of a tax regulation concerning a withhold tax appeared with an entry into force of an amendment to the Corporate Income Tax Act from 2019. Legal definition of a beneficial owner has generated numerous problems in applying tax exemption by holding companies, due to disputes addressing a question if holding companies fulfils requirements of a definition of “actual economic activity”. This definition (which is included in Article 24a(18) of Corporate Income Tax Act) is essential to use tax exemption from Article 22(4) of Corporate Income Tax Act. The article is focused on regulations on an exemption from withholding tax applied in relation to holding companies. It is claimed that holding companies are able to fulfil, in broaden meaning, the definition of the beneficial owner. The second part of the article focuses on the possibility of using a “look through approach” when a holding company is only an intermediary. This view is verified in particular from a perspective of newly published explanations from 28 September 2023 of the Ministry of Finance.
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institution Kabale University
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language English
publishDate 2024-03-01
publisher Wydawnictwo Naukowe Uniwersytetu Mikołaja Kopernika
record_format Article
series Prawo Budżetowe Państwa i Samorządu
spelling doaj-art-d77a51c66aca4e28b6cecab892ffa7fa2025-08-20T03:50:53ZengWydawnictwo Naukowe Uniwersytetu Mikołaja KopernikaPrawo Budżetowe Państwa i Samorządu2300-98532353-70862024-03-01121759810.12775/PBPS.2024.005Holding companies as beneficial owners and intermediaries of dividendsOskar Winnicki0https://orcid.org/0009-0006-2079-8787University of Wrocław, PolandMany issues in an application of a tax regulation concerning a withhold tax appeared with an entry into force of an amendment to the Corporate Income Tax Act from 2019. Legal definition of a beneficial owner has generated numerous problems in applying tax exemption by holding companies, due to disputes addressing a question if holding companies fulfils requirements of a definition of “actual economic activity”. This definition (which is included in Article 24a(18) of Corporate Income Tax Act) is essential to use tax exemption from Article 22(4) of Corporate Income Tax Act. The article is focused on regulations on an exemption from withholding tax applied in relation to holding companies. It is claimed that holding companies are able to fulfil, in broaden meaning, the definition of the beneficial owner. The second part of the article focuses on the possibility of using a “look through approach” when a holding company is only an intermediary. This view is verified in particular from a perspective of newly published explanations from 28 September 2023 of the Ministry of Finance.https://apcz.umk.pl/PBPS/article/view/51491/40961holding companywithholding taxbeneficial ownerlook through approach
spellingShingle Oskar Winnicki
Holding companies as beneficial owners and intermediaries of dividends
Prawo Budżetowe Państwa i Samorządu
holding company
withholding tax
beneficial owner
look through approach
title Holding companies as beneficial owners and intermediaries of dividends
title_full Holding companies as beneficial owners and intermediaries of dividends
title_fullStr Holding companies as beneficial owners and intermediaries of dividends
title_full_unstemmed Holding companies as beneficial owners and intermediaries of dividends
title_short Holding companies as beneficial owners and intermediaries of dividends
title_sort holding companies as beneficial owners and intermediaries of dividends
topic holding company
withholding tax
beneficial owner
look through approach
url https://apcz.umk.pl/PBPS/article/view/51491/40961
work_keys_str_mv AT oskarwinnicki holdingcompaniesasbeneficialownersandintermediariesofdividends