Pursuant to the standpoint of tax authorities, a company which insures its management staff (including the members of management boards, supervisory boards, directors) against civil liability for the activities performed by those persons, is obliged to calculate, withhold and pay an advance payment for the income tax to the relevant tax office (individual interpretation of the Tax Chamber in Warsaw, IPPB4/415-825/10-2/JS), irrespective of the fact whether the insurance agreement is concluded as anonymous. The tax authorities explain their standpoint by pointing out that the insured persons are known to the companies and the amount of the fixed rate of the insurance may be divided by the number of persons which in a given period were covered with the agreement. Thus it is possible to embody the service in respect to each of the recipients.

Contact person: Małgorzata Lewandowska, mlw@pnplaw.pl