Commitment fee on an undrawn loan limit and withholding tax: not every fee is interest

Published 2026-11-05

According to information from the TPA Poland portal, the judgment of 22 October 2026 states that not every fee related to financing is interest subject to withholding tax, or WHT. This is an important distinction for companies that borrow money or use foreign financing.

Withholding tax is a tax that the payer deducts from certain payments, for example from interest paid to foreign entities. Therefore, the way a given payment is classified determines whether it must be taxed and at what rate. Entrepreneurs and their accountants must therefore carefully analyse the nature of each fee.

One example is the commitment fee on an undrawn loan limit. This is a fee that the borrower pays for the bank keeping an available limit of funds for it, even if it does not use the limit in full. Such a fee is not automatically treated as interest, and its taxation depends on the specific circumstances.

For companies that use financing from banks or lenders abroad, this means that the classification of individual fees is of great importance for tax settlements. Before making a decision, it is worth checking the terms of the contract and the available interpretations.

The details of the judgment should be checked in the full text of the ruling or in an analysis by specialists, because the summary information does not include all of the reasoning.

Sources: TPA Poland

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