The Concept of Dividends in Poland and the Companies Paying It

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The term “dividend” comes from Latin and means “thing to be divided” (Latin Dividendum). Dividends in Poland are assets, most often in the form of cash (but not only that, they can be other assets owned by the object, or shares increasing the company’s capital), paid to shareholders or partners, as remuneration for granting capital.

Polish dividends are incomes generated by shares and types of income from other corporate rights that participate in profits, such as income from remitting shares. In addition, the value of the assets received upon liquidation of the company and the income of the company allocated for the increase of the share capital are also dividends in Poland.

The form and amount of the dividend paid are determined by the general meeting of shareholders, and the payment depends on the following factors: the end of the company’s financial year; making financial statements; approval of the report; decisions on the distribution of income and payment of dividends in Poland.

In Polish law, dividend profits are subject to taxation. Poland has specific regulations in regard to the payment and taxation of dividends, and Polish companies have a 19 percent taxation rate for the dividends paid. The rate applies to the gross dividend amount, meaning that costs cannot be deducted, and the payer of dividends in Poland withholds and remits the withholding tax to the tax office.

Furthermore, Poland also applies the double tax treaties when it comes to provisions concerning nonresidents. In addition, the WHT rate can be reduced when dividends are paid to a foreign shareholder through a double tax treaty.

The Important Notes on Dividends in Poland:

Which WIG20 companies will pay dividends this year?
WZ PKN Orlen – dividends of PLN 3.5 per share
ZWZ PZU – dividends of PLN 3.5 per share
Cyfrowy Polsat – PLN 1.20 / share dividends
Dębica – PLN 3.72 / share dividends
LPP – PLN 450 dividend per share
PGNiG – PLN 0.21 / share dividends
Asseco Poland SA – PLN 3.11 per share dividend.


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