In the face of high budget expenditure and high deficit, as well as the emergence of new tools (introduction of KSeF(JPK_CIT, cooperation with foreign counterparts), the National Revenue Administration is increasingly initiating withholding tax (WHT) audits, seeking to tighten the system and limit opportunities for entrepreneurs to avoid taxation. Unfortunately, as our collected statistics show, even honest withholding tax payers are at risk.
How many withholding tax (WHT) audits were carried out in 2025 and what is the situation in 2026?
The years 2021-2025 were marked by intensified KAS (National Tax Administration) withholding tax enforcement activities. While in 2021, the authorities conducted 113 such proceedings, revealing irregularities totaling PLN 113,8 million, four years later, taxpayers were audited 335 times, and the amount of arrears identified reached nearly half a billion PLN. 2025 was a special year – the number of audits increased by almost 75% year-on-year, while the average amount of irregularities identified decreased significantly.
According to the study one of the consulting companies, approximately 72% of inspections result in the discovery of irregularities, averaging PLN 1,76 million. Although we do not have complete information on the companies inspected, one thing is certain: the intensification of KAS activities is affecting not only the largest companies but also the SME sector. This is due, among other things, to the significant disproportion between the amounts of irregularities identified by individual customs and tax offices. For example, 31 successful inspections by the Customs and Tax Office in Kielce resulted in only PLN 3,64 million (approximately PLN 117,6 per taxpayer), while 68 inspections by the Opole Customs and Tax Office revealed irregularities totaling PLN 163 million (approximately PLN 2,4 million per taxpayer).
Given the above, we shouldn't assume that WHT audits apply only to large businesses. Even companies purchasing foreign services worth several million złoty annually may find themselves under the scrutiny of the National Tax Administration.
Although for obvious reasons we do not yet have statistics on the number of withholding tax audits in 2026, we have found some evidence suggesting that we are dealing with a continuation of the trend and an escalation of the phenomenon. The National Revenue Administration regularly reports on WHT audits, for example in municipal companies, logistics industry, production real estateIn our opinion, tax authorities will end this year with another increase of several dozen percent in the amount of arrears identified.
Who is particularly vulnerable to WHT tax audits?
Our practical experience shows that the risk of WHT control increases when a company:
- Makes dividend payments, pays interest or settles royalties to related entities for a total amount exceeding PLN 2 million per year per entity – in connection with the settlements being subject to the pay and refund procedure,
- Makes payments to a recipient with a complicated and unclear ownership status,
- He will receive a refusal to issue an opinion on the application of preferences in WHT,
- Makes payments to entities located in particularly favorable tax jurisdictions (the Netherlands, Luxembourg, Malta, Liechtenstein).
Moreover, as indicated by Polish Press Agency, tax authorities are carefully analyzing the status of beneficial owners and the decision-making autonomy of the foreign recipient of payments. This source also indicates that in 2026, withholding tax is of particular interest to the tax authorities – right next to transfer prices, which are also an easy target for the authorities.
Why do tax authorities more often examine the correctness of withholding tax (WHT) settlements?
In our opinion, there are several reasons, but they come down to two factors – it is becoming easier and at the same time, the budget needs money.
Digitization in taxes is a fact and it cannot be assumed that it remains insignificant. The already mentioned tools such as KSeF, JPK_CIT, MDR/DAC6 or DAC7 directive hitting digital creators They were designed and implemented primarily to facilitate tax authorities' oversight of taxpayers' settlements and to hinder tax avoidance practices. In the case of withholding tax, the most important tools are JPK_CIT and CRS.
In our opinion, tax authorities are intensifying their tightening efforts this year also due to Poland's budget situation. the budget gap in 2026 is lower than a year earlier, the planned deficit for this year is approximately PLN 270 billion (compared to approximately PLN 919 billion in planned expenditures). Certainly, one of the best ways to increase budget revenues is to improve tax collection, including, of course, withholding tax. In the justification for the draft budget act, the Ministry of Finance explicitly declared that improving tax collection is a tool for strengthening the revenue side of the budget.
Interpretative doubts do not improve the situation
Referring to the topic of increased activity of the National Tax Administration (KAS) in examining the correctness of withholding tax settlements, it is impossible not to mention a number of interpretational doubts related to WHT, which undoubtedly increase the level of risk for entrepreneurs. This was signaled, for example, by Infor in an article published in May this year.
First of all, it is still uncertain whether the beneficial owner must be examined in the case of the dividend exemption under Article 22, Section 4 of the CIT Act. While the Minister of Finance, in his explanations issued on July 3, 2025, indicated such an obligation, the Supreme Administrative Court clearly maintains a different position, arguing that Article 22, Section 4 of the CIT Act does not include the beneficial owner criterion, and as a consequence, the authorities attempt to burden taxpayers with obligations that do not arise from the Act.
It also remains unclear qualification of hosting services on the basis of WHTand, consequently, also the software distributed in the model Software as a ServiceIn these specific cases, the problematic issue is not only the unstable position of the judiciary, but also the failure of the provisions of the Act to adapt to the dynamic development of technology. It is also impossible to forget the unclear concept of due diligence of the payer. The terms used in MF Explanations failed to resolve doubts regarding the number of documents and their content. Sometimes, authorities expect taxpayers to have virtually expert knowledge of the internal situation of their contractors.
Finally, the possibility of applying the so-called look-through approach, which involves applying the provisions applicable to the beneficial owner of the payment, while bypassing the legal entity appointed by him or her as an intermediary, is debatable. Although, according to the Ministry of Finance, LTA is an option, not an obligation, for the taxpayer, this institution is completely absent from the provisions of the CIT Act, as has been repeatedly emphasized by administrative courts (cf. judgment of the Regional Administrative Court in Kielce of 12 February 2026, I SA/Ke 487/25).
These are just some of the interpretation problems, the resolution of which in practice determines whether the payer is properly fulfilling his obligations or not.
What should you do to protect yourself against a dispute with the tax authorities regarding the correctness of WHT settlement?
The growing prevalence of tax audits translates into a real increase in risk for businesses – as a reminder, the average amount of irregularities identified in 2025 was PLN 1,76 million. Consequently, businesses should take steps to reduce the likelihood of entering into a dispute with the authority.
Above all, WHT compliance should include an analysis not only of contracts and transactions, but also of the factual circumstances. Especially if an entrepreneur decides to submit the WH-OSC form, they should make every effort to ensure that the authority cannot accuse them of failing to exercise due diligence.
If you need support during withholding tax audits, they want to apply for opinion on the use of WHT preferences Or if you'd like to objectively assess your situation, please contact us. We have many years of experience supporting entrepreneurs in this area.
