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New convention – tax treaty – Poland-Canada

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The new convention was published between Poland and Canada for the avoidance of double taxation and the prevention of fiscal evasion (signed in May 2012). The convention came into effect October 2013 but individual rules will apply from the beginning of 2014.

 

According to the agreement in Poland the primary method of avoiding double taxation will be the method of exemption with progression. Income achieved overseas will be excluded from the taxable amount in Poland. For capital income (interest, dividends, royalties) provisions for the method called proportional credit will apply.

 

Capital income tax rate is established as follows: – 10 percent. (royalties and interest) 5 and 15 percent (dividends).

The agreement also contains provisions concerning the current tax information exchange – in accordance with the guidelines of the Organization for Economic Cooperation and Development (OECD). Also a procedure for the provision of information on demand is introduced.

 

The text of Polish-Canadian convention is provided at:

http://dziennikustaw.gov.pl/du/2013/1371/D2013000137101.pdf