Treaty Rate and WHT — Foreign Tax Credit Limit

When you receive dividends from US stocks (e.g. Apple, Microsoft), the broker withholds tax at source — 30% without W-8BEN or 15% with it. The Polish calculator should credit this tax against the 19% Polish tax. Problem: per the PL-US treaty and KIS interpretation line, in Poland you can credit **only up to the treaty rate** (for US: 15%) — not the 30% actually withheld. You pay the 4pp difference (19% − 15%) in Poland.

Art. 30a(9) of the Polish PIT Act in conjunction with art. 91 of the Polish Constitution and the dominant interpretation line of the KIS Director. Double taxation treaties limit the source-state WHT rate, and Polish law allows crediting only the portion of tax that "could have been withheld under the treaty". Full treaty texts are available on the Ministry of Finance website.

All rates below apply to individual portfolio investors (<10% ownership). Rates for institutional/direct holdings are usually lower — not relevant for PIT-38.

• USA — dividends: 15%, interest: 0%
• Germany — dividends: 15%, interest: 5%
• United Kingdom — dividends: 10%, interest: 5%
• Ireland — dividends: 0% (UCITS ETFs do not withhold), interest: 10%
• Netherlands — dividends: 15%, interest: 5%
• Luxembourg — dividends: 15%, interest: 5%
• Switzerland — dividends: 15%, interest: 5%

Assume you receive $100 dividend from Apple. Broker without W-8BEN withholds $30 WHT. NBP rate on payment day: 4.00 PLN/USD.

1. 1Gross income: $100 × 4.00 = **400 zł**
2. 2WHT withheld by broker: $30 × 4.00 = **120 zł**
3. 3Polish 19% tax on income: 400 × 0.19 = **76 zł** (box G.47)
4. 4Credit limit (treaty 15%): 400 × 0.15 = **60 zł** (box G.48)
5. 5To pay in Poland: 76 − 60 = **16 zł** (box G.49)
6. 6Broker over-withholding: 120 − 60 = **60 zł** — reclaim from IRS via Form 1040-NR

W-8BEN is a US form on which you declare non-US tax residency. Once filed with the broker, they automatically apply the treaty rate (15% instead of 30%).

1. 1Log in to your broker account (IBKR, Lynx, Revolut, eToro, etc.)
2. 2Find the "Tax Forms" section
3. 3Fill in W-8BEN — enter your Polish PESEL as Foreign Tax ID, residence country: Poland, claim treaty rate 15%
4. 4Sign electronically and save

If the broker withheld more than 15% (e.g. 22% or 30%), you cannot credit the excess in Poland. But you can reclaim it directly from the US IRS by filing Form 1040-NR for non-residents.

1. 1Wait until February-March of the following year — broker will send **Form 1042-S** with total WHT withheld
2. 2Download **Form 1040-NR** from irs.gov (along with instructions and schedules A, NEC)
3. 3Fill in the form marking dividends and WHT from 1042-S — the system calculates the refund
4. 4Mail to the IRS address (Austin, Texas) or file via tax preparer — electronic 1040-NR filing is not always available
5. 5Refund arrives in your bank account within 3-6 months

Some situations require extra attention:

• **Irish UCITS ETFs (Vanguard VUSA, iShares CSPX etc.)**: Ireland does not withhold from non-residents — the 15% WHT "seen" at fund level is US tax withheld from underlying companies INSIDE the ETF. This tax CANNOT be credited in Poland (paid by the fund, not by the investor). In practice: Irish ETFs = 0% external WHT, but you lose ~15% at the internal level.
• **US interest (cash interest at broker)**: PL-US treaty provides 0% WHT on interest. If broker still withheld 30% (not recognized as PL resident) — reclaim excess from IRS via 1040-NR (identical procedure to dividends).
• **German Kapitalertragsteuer (26.375%)**: German companies withhold 25% + 5.5% solidarity = 26.375%. PL-DE treaty caps at 15%. Excess (~11pp) reclaimable from Bundeszentralamt für Steuern (Erstattungsantrag form).