Abstract

The provisions of the Corporate Income Tax Act provide for the possibility of WHT exemption on interest and royalties payments made to non-resident companies from EU or EEA Member States. One of the conditions is that the company receiving the payment does not use the tax exemption on its entire income, regardless of the source of its generation. This condition expressed in art. 21 sec. 3c of the Corporate Income Tax Act is currently the subject of many judgments of administrative courts. This publication attempts to recreate the appropriate understanding of this provision.