United States, Poland Sign New Income Tax Treaty

The new treaty provides for the full exchange of information between the competent authorities to facilitate the administration of each country’s tax laws

13 February 2013 new income tax treaty between the United States and Poland was signed. It will replace the existing agreement, signed in 1974.

The new treaty provides for reductions in withholding taxes on cross-border payments of dividends, interest and royalties. It also incorporates new methods for attributing business profits to a permanent establishment. The new methods were recently developed by the Organization for Economic Cooperation and Development and are consistent with U.S. tax treaty policy.

The text of the treaty document can be found here.