I know that there is a quite numerous representation of Poles here so maybe I am lucky and I found someone with the same case.
I made some money on Polish stock exchange but I am a Swiss tax resident of course (mainly capital gains from selling shares but also some dividends).
Do I have to submit/pay any taxes to the Polish tax office? In my account in e-Urzad Skarbowy they have this info from the bank and ask me to pay taxes (PIT-38 form).
I know that it depends on the tax treaty between PL and CH but perhaps some of you already went through it
I don’t really know, but maybe it’s the same principle as with renting? So money earned in Poland (eg. from renting the apartment) should be taxed in Poland, but then it also affects tax rate in Switzerland too?
No, as a Swiss tax resident (with the usual “unbeschränkte Steuerpflicht”), you’re taxed in Switzerland for worldwide income from stocks, although capital gains are tax-free as private investor, of course. I.e., unlike foreign real estate, the dividend income (and wealth) from foreign stocks doesn’t just affect the tax rate in Switzerland.
You may be able to get a Swiss tax credit for foreign withholding taxes (DA-1) depending on the tax treaty but the primary taxation would still be in Switzerland.
As far as I know, most countries do not tax non-residents if they invest into stocks in that country, with the exception of withholding taxes on dividends. However, there are some countries that may tax non-residents, mainly if you’re a citizen of that country (e.g. US) or if you’ve recently been a resident. I don’t know whether this applies to Poland or not.
They have this info from your Polish bank? Have you informed them when you moved to Switzerland and became a Swiss (tax) resident?
@Frugo: I guess that to be on safe side, the best would be just to ask Polish tax authorities.
I tried last year to ask and they said that it depends on the Polish-Swiss Tax Treaty but they did not know what is in the Polish-Swiss Tax Treaty
I know I can read it myself but I do not really like reading tax agreements because they are really ambiguous.
Yes, they got the info from the bank, even the precise numbers. Both tax authorities and the bank know that I am a non-resident.
In general I agree with you @jay, and I was quite sure about it until I got the tax form and the amount of tax to pay in the e-tax system in Poland
Don’t think there’s much surprising in it. Seems to mostly default to being taxed in the place where one is resident of.
Edit: there might be a 15% tax on dividend but I’d expect that to be withheld at source.
@Frugo did you finally pay the tax in Poland? I am in the same situation. My polish Broker submitted PIT-38 for me with my Swiss residence address. However I was still asked to pay the tax by polish Tax Authorities. I appealed from that decision saying that I am Swiss tax resident (they already blocked money on my polish account). They called me back and asked for Tax Residency Certificate and breakdown of all the company shares I sold in 2022, whether their assets consist of more than 50 per cent directly or indirectly of immovable property. Which is crazy. I don’t think any of the companies publishes in the balance sheet where their immovable assets are located?
@Frugo I wonder how did the taxation situation end up for you?
For reference: Konwencja o unikaniu podwójnego opodatkowania ze Szwajcarią - przepisy.gofin.pl Art. 13, ust 3a
I declined PIT-38 that they prepared for me on the last day before the deadline with a note that I am a Swiss Tax Resident and so far I haven’t heard from them - so it turned out okay it seems, I did not pay anything.
If you missed the deadline and your tax declaration has been automatically submitted then probably you would need to provide them with this Tax Residency Certificate to undo it and also submit a correction.
I heard about this “50% immovable property in PL” rule but this is really crazy and I think impossible to enforce - if I were you I would interpret it in your favor and if they have a different opinion - ask them to give you any evidence that you are wrong. This is of course not a professional tax advice (disclaimer )
Let us know how it evolves!
Thank you. So basically you didn’t submit PIT-38 at all?
Yes correct, I rejected the automated version prepared by the Tax Office and indicated the reason in the notes that I have a Swiss Tax Residency. Maybe it’d be better to submit it and edit the tax amount due to 0 PLN but so far nobody asked me anything.