# The Double Taxation Relief (Taxes on Income) (Poland) Order 1978, Note: Explanatory note


Under the Convention with Poland scheduled to this Order certain trading profits not arising through a permanent establishment, interest, pensions (other than Government pensions) and the earnings of temporary business visitors are (subject to certain conditions) to be taxed only in the country of residence of the taxpayer. International transport profits are to be taxed only in the country of effective management of the enterprise. Government salaries and pensions are normally to be taxed by the paying Government only. The remuneration of visiting teachers and certain payments made to visiting students are (subject to certain conditions) to be exempt in the country visited.
Where income continues to be taxable in both countries, relief from double taxation is to be given by the country of residence of the taxpayer.
The rate of tax on dividends flowing from one country to the other is normally not to exceed 5 per cent where the dividend is paid to a company which controls directly or indirectly at least 10 per cent of the voting power in the paying company and 15 per cent in all other cases. The Convention also makes specific provision for dividends paid by a United Kingdom company to a resident of Poland as long as under United Kingdom law an individual resident in the United Kingdom is entitled to a tax credit in respect of dividends paid by a company resident in the United Kingdom: where a United Kingdom company pays a dividend to a resident of Poland (other than a company which controls directly or indirectly at least 10 per cent of the voting power in the paying company) the recipient is (subject to certain conditions) to receive the tax credit to which an individual resident in the United Kingdom in receipt of such a dividend would be entitled, less income tax at a rate not exceeding 15 per cent on the aggregate of the dividend and the tax credit.
The rate of tax in the source country on royalties flowing from one country to the other is, in general, not to exceed 10 per cent.
There is provision for the taxation of capital gains on immovable property by the country in which the property is situated. Capital gains arising from the disposal of movable property are normally to be taxed only in the country of residence of the taxpayer unless they arise from the disposal of assets of a permanent establishment or fixed base which the taxpayer has in the other country.
There are also provisions safeguarding nationals and enterprises of one country against discriminatory taxation in the other country and for the exchange of information and consultation between the taxation authorities of the two countries.
The Convention is to take effect in the United Kingdom for income tax and capital gains tax for any year of assessment beginning on or after 6 April 1975 and for corporation tax for any financial year beginning on or after 1 April 1975.

---
Source: https://www.legislation.gov.uk/uksi/1978/282/note (the official version)
Page: https://openlegislation.uk/double-taxation-relief-taxes-on-income-poland-order-1978/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.