Certificate of tax residency is a document designed to prevent tax evasion and improper application of provisions in treaties for the avoidance of double taxation. Who should apply for it? What information it includes and how to get it? For these questions and more find answers in article below.

What is tax residency?

Tax residency is the place where a natural or legal person must fulfil tax obligations. It allows to determine the so-called unlimited tax liability. It is crucial for taxation purposes. Countries differentiate the taxation rules for natural and legal persons depending on their tax residency.

For natural persons, tax residency is usually determined based on their permanent residence or the time they spend in a given country. For legal entities, tax residency is often linked to the place of registration or management of their main business centre.

Who can become a tax resident?

To obtain tax residency in Poland, you must meet at least one of the following conditions:

Having a centre of personal or business interests in Poland.
Staying in Poland for a period longer than 183 days during the tax year.

What is a certificate of tax residency?

The tax residency certificate in Poland is a document that indicates and confirms:

the taxpayer’s place of residence – in the case of natural persons
the taxpayer’s registered office – in the case of legal entities.

It is issued to prevent misuse of international double taxation avoidance agreements.

A tax residency certificate is a proof of having tax residency in a specific country. It authorises the payer to apply the tax rate determined by the international agreement on double taxation avoidance concluded by that country, instead of the rate specified in domestic regulations.

What does certificate of tax residency include?

The law defines a tax residency certificate in Poland as proof of the taxpayer’s residence for tax purposes. It is issued by the tax authority of the taxpayer’s country of residence.

This means that a properly prepared tax residency certificate in Poland should include:

Identification details of the entity: residence or registered office, name or business name.
Date of issuance of the document.
Information about the validity period of the certificate (not a mandatory requirement).
Confirmation of residence or registered office for tax purposes in the specific country.
Details of the issuing authority.

Importantly, there is no common template for the tax residency certificate in Poland. The document also does not have to be named a “certificate”. It is sufficient for it to contain the mentioned details and information.

Who issues the certificate of tax residency in Poland?

The competent tax administration authority of a given country issues tax residency certificate. In Poland, the tax office competent for the taxpayer’s place of residence or registered office grants it.

When is it worth applying for a certificate of tax residency in Poland?

The tax residency certificate is useful for:

natural and legal persons conducting business both in Poland and abroad,
taxpayers earning income in another country who want to avoid double taxation.

How to pay lower taxes while running a business in Poland? Find some tips in this article.

Who can apply for a certificate of tax residency in Poland?

As indicated above, the tax residency certificate applies to income tax of taxpayers who have their place of residence or registered office in Poland.

You can apply for a tax residency certificate in Poland in person or through a representative. The power of attorney must be granted in writing at the tax office. It is also admissible in the form of an electronic document via e-PUAP.

How to apply for a certificate of tax residency in Poland?

You can submit an application for a certificate of tax residency in Poland in two ways:

in paper form,
in electronic form.

Application in paper form	You can submit it in person to the tax office competent for the taxpayer’s place of residence or registered office. You can also send it by post to the tax office competent for your place of residence or registered office. It requires a handwritten signature.
Application in electronic form	You can send it as an attachment to a general notice in the e-Tax Office platform. You can also send it via e-PUAP. It requires authentication via Trusted Profile or qualified signature.

Forms of application for a certificate of tax residency in Poland

In both cases, you must complete the CFR-1 form, which should include:

Taxpayer’s details,
Reason for submitting the application,
Number of certificate copies,
Method of certificate receipt.

How much does it cost to apply for a certificate of tax residency in Poland?

No fee	applications submitted through the e-Tax Office
Stamp duty of PLN 17	applications submitted in paper form, applications submitted via e-PUAP

Costs of submitting an application for a tax residency certificate in Poland

The obligation to pay the mentioned tax duty arises upon submitting the application. Remember to include payment confirmations with the application. The proof of payment can be in the form of a printout confirming the transfer.

How long does it take to obtain a certificate of tax residency in Poland?

Within 7 days of submitting an application, the competent tax administration authority issues:

tax residency certificate, or
decision to refuse its issuance.

What is the validity period of the certificate of tax residency in Poland?

As mentioned above, information about the validity period is not a necessary condition for the certificate’s validity. If the certificate does not clearly specify a term, it is assumed to be valid for 12 months from the date of issuance. After this period, the taxpayer should apply for a new tax residency certificate.