Albania, Algeria, Armenia, Australia, Austria, Azerbaijan, Bangladesh, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Canada, Chile, China, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Egypt, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, Kygyzstan, Korea, Kuwait, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Mexico, Moldova, Mongolia, Montenegro, Morocco, Netherlands, New Zealand, Nigeria, Norway, Pakistan, Philippines, Portugal, Qatar, Romania, Russia, Serbia, Singapore, Slovak Republic, Slovenia, South Africa, Spain, Sri Lanka, Syria, Sweden, Switzerland, Tajikistan, Thailand, Tunisia, Turkey, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uruguay, Uzbekistan, Vietnam, Zambia and Zimbabwe are the countries which have signed double tax treaties with Poland over the years.
Elaborated after the model proposed by OECD, the treaties may suffer changes in major areas, mostly regarding the tax rates and the conditions that has to be met in order to beneficiate from the special incentives.
Usually the dividends are taxed for a non treaty country with 19% and the interest and royalties are taxed with a 20% withholding tax. Based on the bilateral agreements, these taxes are minimized for the partners and never exceed 15%. In special cases, the withholding taxes are exempt. The members of EU are not subject to taxation of dividends.
The income of a company can be taxed only in one country, according to the signed double tax treaties. There are two methods to avoid the double taxation: through exemption or through credit.
If a resident of another state wants to beneficiate from a treaty’s advantages, it must provide a certificate of residence and a proof that the taxes are paid in the country of residence. These documents are submitted to the Polish tax authorities to be checked.
Even though it can be checked with the above methods, the name of the resident will also appear on the list with the taxpayers exchanged every year by the treaty countries. This is another regulation imposed by the double tax treaties. The information from the lists is confidential, no public announcement can be made regarding it and a third party cannot be involved in the process of checking.
For more information on how you can take advantage of the provisions of the double tax treaties or for other tax related services, such as VAT registration in Poland, please contact our team of Polish company formation agents.