SolvedDT15402 | Double Taxation Relief Manual: Poland: treaty summary
From HM Revenue & Customs · Double Taxation Relief Manual
The table summarises the provisions of the treaty in force. Where a percentage rate is shown, this rate is the ‘treaty rate’ and does not reflect taxes chargeable under the domestic law of either state before relief is given under the provisions of the treaty. The ‘treaty rate’ is the maximum rate at which the UK and Poland are permitted to tax income in the relevant categories under the treaty. Rates chargeable under the domestic law of either state may be higher or lower.
In all cases other conditions for relief (e.g. beneficial ownership) will have to be met before relief is due under the treaty. The text of the treaty itself should be consulted for the full details. The text of the treaty can be found on gov.uk.
| Subject | Comments | Article |
|---|---|---|
| Portfolio dividends | 10% | 10 |
| Dividends on direct investments | 0% | 10 |
| Conditions for lower rate on dividends on direct investments | The beneficial owner must be a company which holds at least 10% of the capital of the company paying the dividends (Note 1) | 10 |
| Property income dividends | 10% | 10 |
| Interest | 5% (Note 2) | 11 |
| Royalties | 5% | 12 |
| Government pensions | Taxable only in Poland unless the individual is a resident and national of the UK | 18 |
| Other pensions | Taxable only in the UK (Note 3) | 17 |
| Arbitration | No | N/A |
Note 1: The date of payment of the dividend must fall within an uninterrupted period of 24 months during which this level of capital was held by the beneficial owner of the dividend.
Note 2: Interest is taxable only in the state of residence of the beneficial owner where such interest is paid:
to the UK Government, a political subdivision or local authority thereof, or the Bank of England or any institution wholly owned by the UK Government
on a loan of whatever kind granted, insured or guaranteed by a governmental institution for the purposes of promoting exports
in connection with the sale on credit of any industrial, commercial or scientific equipment
on any loan of whatever kind granted by a bank
Note 3: Lump-sum payments derived from a pension scheme established in Poland are taxable only in Poland.