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- 06/04/2012
OECD Urges Tax Reform In Poland
- 21/02/2012
The Netherlands Ups Tax Treaty Negotiations In 2012
- 14/02/2012
Germany Stalls On ACTA
- 08/02/2012
FTT Will Hit UK Revenues Even With Opt Out
- 18/01/2012
EU Tax Burdens Stabilize
More
Poland Tax News »
Treaty Update:
Canada - Poland
23/5/2012
Canada and Poland signed a Protocol to amend the existing 1987 DTA on May 14, 2012. The Protocol in particular lowers the rates of withholding tax applicable under the treaty.
Treaty Update:
Korea, South - Poland
14/5/2012
Korea's Ministry of Finance announced on May 11, 2012, that Poland and South Korea had held their first round of negotiations towards revising the 1992 DTA.
Treaty Update:
San Marino - Poland
5/4/2012
The San Marino Chamber of Commerce has disclosed that San Marino and Poland signed a TIEA on March 31, 2012.
More
Poland Tax Treaty Updates from TreatyPro »
Poland Knowledge Base
You can find
summarised information on this page, or
use these links to access our more detailed
Knowledge Base:
Poland
as a nation began in the 10th century, under
the Piast dynasty, and it has been divided
up amongst its neighbours many times in
its history. Poland regained its independence
in 1918, only to lose it again in the Second
World War, becoming a Soviet satellite state
in the post-war period. The formation of
the independent trade union, Solidarity
led to a period of martial law and repression,
but by 1990, Solidarity leader Lech Walesa
was President. Poland joined NATO in 1999
and the European Union in 2004. Poland has
a land area of 312, 685 sq km, and is located
in Central Europe, to the east of Germany,
with a northern coastline on the Baltic
Sea. The climate is temperate but changeable.
The population was estimated at approx 38.5
million in 2007. Almost all are of Polish
origin and over 90% are Roman Catholics.
[Further
Information]
The
capital of the republic is Warsaw and the
country is divided into 16 administrative
provinces. The President is the head of
state, and the Prime Minister is the head
of government; there is also a Council of
Ministers. The National Assembly has an
upper house of 100 seats and lower house
of 460. The major legal institutions include
the Supreme Court, the Constitutional Tribunal
and the State Tribunal. Rulings of the Constitutional
Tribunal are final. Court decisions can
be appealed to the European Court of Justice.
[Further
Information]
Poland
has pursued a policy of economic liberalization
since 1990, and this appears to be paying
dividends, with
GDP
growing an estimated 4.8% in 2008. Per capita,
it still lags the EU average,
coming
in at USD17,300,
or PLN 50,377 (2008 est.) Unemployment is
high, although falling, with the figures
for 2008 showing a 3% drop from the 2007
level of 12.8%.
[Further
Information]
The
main legal forms of companies are the joint
stock company (SA) and the limited liability
company (Sp z o.o.). The minimum start-up
capital for a joint stock company is PLN
500,000; 25% of this must be paid up prior
to registration. A limited liability company
has a minimum capital requirement of PLN
50,000. It may have a only a single shareholder.
[Further
Information]
Corporate
income tax (CIT) is levied on corporate
income at 19%. CIT is paid monthly, in advance.
In Poland the VAT rates are 22% (standard
rate), 7%, 3%, 0% and exemption. The reduced
rates apply to pharmaceuticals, transport
and agricultural products. Zero-rated activities
include the export of goods to countries
outside the EU. VAT-exempt supplies include,
financial, insurance and educational services.
Excise duties are levied on alcohol, cigarettes,
petrol, passenger cars and electric power.
Property tax rates are fixed by local municipalities.
There is stamp duty on other civil law transactions.
[Further
Information]
The
corporate income tax rate, at 19%, is one
of the lowest in Europe. There are various
tax and other incentives for business activities
carried out in the 14 Special Economic Zones.
A business entity must obtain a permit from
the Ministry of the Economy to conduct business
activities there. Most of the Special Economic
Zones offer income tax exemption up to 50%
of investment expenditure. [Further
Information]
Poland
does not have a Controlled Foreign Company
regime. Tax consolidation is permitted,
subject to certain requirements, allowing
the tax losses of tax group members to be
set off against the taxable income of the
group, but cross-border consolidation is
not permitted.
[Further
Information]
Dividends
are generally subject to a 19% rate, which
can be reduced under a DTA (of which Poland
has more than 80), and is removed altogether
when paid to companies in EU and EEA states,
subject to the conditions of the Parent-Subsidiary
Directive.Poland additionally benefits from
a transitional period for removing the withholding
tax on interest and royalty payments paid
by Polish corporate residents to associated
EU companies. From 1 July 2009, it is 5%
(previously 10%). From 1 July 2013, the
full exemption will be in place. Where there
are no special rules in place, withholding
taxes are imposed under the general provisions
of the Corporate Income Tax Act, and the
applicable Double Tax Treaty, if there is
one in place.
[Further
Information]
Liberalisation
of the telecoms market was completed in
2003. The value of the telecommunication
market was PZL38.2bn in 2006, and it grew
by 12.4% in 2007. According to international
estimates, there were more than 10 million
fixed lines in use in 2007. The domestic
mobile-cellular service has been available
since 1993, although there are just a few
networks. There were in excess of 41 million
mobile phones in 2007. Internet access in
Poland is amongst the most expensive in
Europe. There were 20 million Internet users
(2008).
[Further
Information]
Narodowy
Bank Polski (or the National Bank of Poland)
is the Polish Central Bank. It is regulated
under the 1997 Constitution, and the Banking
Act, and has responsibility for currency
and monetary policy matters. Commercial
banks dominate the industry, holding around
95% of total banking sector assets (with
co-operative banks holding the rest). The
zloty (PLN) is fully convertible, although
there are some reporting requirements.
[Further
Information]
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