Tax Convention Signed Between Canada and Poland

May 14, 2012

• Full text of the new Convention

A new Convention between Canada and the Republic of Poland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income was signed on May 14, 2012, in Ottawa. Once in force, the new Convention will replace the current Canada-Poland Tax Convention signed in 1987.

The new Convention limits the rate of withholding tax to 5% for dividends paid between affiliated companies, to 15% for dividends paid in all other cases, to 5% for copyright and know-how royalties, and to 10% for payments of interest and all other royalties.

Consistent with the Government's policy announced in Budget 2007, the new Convention includes provisions reflecting the standard developed by the Organisation for Economic Cooperation and Development for the exchange of tax information.

The new Convention will enter into force once Canada and the Republic of Poland have notified each other that the procedures required by their laws for the bringing into force of the new Convention have been completed. In Canada, the new Convention will have effect, in respect of tax withheld at source on amounts paid or credited to non-residents, on or after the first day of January in the calendar year following that in which the new Convention enters into force; and, in respect of other taxes, for taxation years beginning on or after the first day of January in the calendar year following that in which the new Convention enters into force.

For further information contact:

Tax Legislation Division
Phone: 613-369-4016