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Signature of a new tax convention with Poland
The current Canada-Poland Tax Convention was signed in 1987. Since then, Canada’s tax convention and domestic tax policies, and internationally accepted tax convention standards, have evolved.
The new tax convention will include modernized provisions that conform to current Canadian and international tax treaty policies, which is based on the Model Tax Convention on Income and on Capital developed by the Organization for Economic Co-operation and Development (OECD).
More specifically, the new tax convention will:
- Further reduce tax barriers in order to encourage trade and investment between Canada and Poland;
- Lower the maximum rate of withholding tax on dividends paid between companies from 15% to 5% and on interest payments from 15% to 10%;
- Ensure the elimination of double taxation for individuals and companies doing business or earning income in the other country.
The new tax convention, which will replace the 1987 Tax Convention, will come into force once it has been ratified by both countries.
Canada has a wide network of tax conventions in force with 89 countries. The Government of Canada is committed to keeping its tax conventions updated and to negotiating new tax conventions, where warranted, to support the competitiveness of Canadian businesses abroad as well as to attract investment to Canada.
