Australian Tax Treaties
Polish Agreement
AGREEMENT BETWEEN AUSTRALIA AND THE REPUBLIC OF POLAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
ARTICLE 24
Methods of Elimination of Double Taxation
1.
Subject to the provisions of the law of Australia from time to time in force which relate to the allowance of a credit against Australian tax of tax paid in a country outside Australia (which shall not affect the general principle hereof), Polish tax paid under the law of Poland and in accordance with this Agreement, whether directly or by deduction, in respect of income derived by a person who is a resident of Australia from sources in Poland shall be allowed as a credit against Australian tax payable in respect of that income.
2.
Where a company which is a resident of Poland and is not a resident of Australia for the purposes of Australian tax pays a dividend to a company which is a resident of Australia and which controls directly or indirectly not less than 10 per cent of the voting power of the firstmentioned company, the credit referred to in paragraph 1 shall include the Polish tax paid by that firstmentioned company in respect of that portion of its profits out of which the dividend is paid.
3.
Where a resident of Poland derives income which under this Agreement may be taxed in Australia, Poland shall deduct from the Polish tax payable in respect of that income an amount equal to the Australian tax paid in respect of that income. Such deduction shall not, however, exceed the Polish tax, computed before the deduction is made, payable in respect of that income.
The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the MLI) has modified the application of this tax treaty. A synthesised text of the MLI and this tax treaty is available to facilitate the understanding of how the MLI modifies this tax treaty.
Subject to the provisions of the law of Australia from time to time in force which relate to the allowance of a credit against Australian tax of tax paid in a country outside Australia (which shall not affect the general principle hereof), Polish tax paid under the law of Poland and in accordance with this Agreement, whether directly or by deduction, in respect of income derived by a person who is a resident of Australia from sources in Poland shall be allowed as a credit against Australian tax payable in respect of that income.
2.
Where a company which is a resident of Poland and is not a resident of Australia for the purposes of Australian tax pays a dividend to a company which is a resident of Australia and which controls directly or indirectly not less than 10 per cent of the voting power of the firstmentioned company, the credit referred to in paragraph 1 shall include the Polish tax paid by that firstmentioned company in respect of that portion of its profits out of which the dividend is paid.
3.
Where a resident of Poland derives income which under this Agreement may be taxed in Australia, Poland shall deduct from the Polish tax payable in respect of that income an amount equal to the Australian tax paid in respect of that income. Such deduction shall not, however, exceed the Polish tax, computed before the deduction is made, payable in respect of that income.
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