The withholding tax is deducted from legal entities and natural persons by payers registered or domiciled in Poland. It must be paid if you have specific incomes, such as dividends, interests or royalties.
It is most often associated with payment of dues by non-residents (cross-border transfers). It may occasionally apply to domestic payments, e.g. when paying a dividend to the domestic entity.
In 2019 the tax law was amended to include a new rule. Based on the aforesaid rule, the payer is obligated to maintain the so-called due diligence in establishing a WHT rate. He must check if a lower WHT rate is allowed or if the above-stated tax may not be withheld, as long as detailed regulations or double tax treaties permit so.
The business partner’s data which must be verified in this process are the following:
Maintaining due diligence requires a number of time-consuming activities. In turn flows of big amounts of information may lead to mistakes if these tasks are performed manually.
XELTO DIGITAL’s task was to implement the solution aimed at automating due diligence maintenance in the process of calculating WHT.
XELTO DIGITAL’s experts have designed a robot that can automate the WHT calculation verification. Its operation has been programmed in accordance with the due diligence principle.
Data obtained at this stage are as follows:
Principal business activities:
Financial data summary:
Global Family Tree:
Then the robot obtains data from such platforms as:
The collected information is as follows:
Once all above-stated steps have been taken, the following happens:
The internal form (sent to the employee) includes mainly questions about contact data. They are asked in order to check credibility of the business partner.
Aside from the basic data that are partly entered by the robot, the external form also contains questions to the business partner. The are concerned with:
At the last stage, the robot collects all obtained information and draws up a final report. All auxiliary files are attached to the aforesaid report.
The human’s contribution in this process is limited only to creating an input file and verifying the final report. It is also possible to schedule the automatic robot activation, yet in this case the Client has opted for a manual service.