FOREWORD. Poland. Services provided by member firms include:

Transcription

1 2016/17

2 FOREWORD A country's tax regime is always a key factor for any business considering moving into new markets. What is the corporate tax rate? Are there any incentives for overseas businesses? Are there double tax treaties in place? How will foreign source income be taxed? Since 1994, the PKF network of independent member firms, administered by PKF International Limited, has produced the PKF Worldwide Tax Guide (WWTG) to provide international businesses with the answers to these key tax questions. As you will appreciate, the production of the WWTG is a huge team effort and we would like to thank all tax experts within PKF member firms who gave up their time to contribute the vital information on their country's taxes that forms the heart of this publication. The PKF Worldwide Tax Guide 2016/17 (WWTG) is an annual publication that provides an overview of the taxation and business regulation regimes of the world's most significant trading countries. In compiling this publication, member firms of the PKF network have based their summaries on information current on 30 April 2016, while also noting imminent changes where necessary. On a country-by-country basis, each summary such as this one, addresses the major taxes applicable to business; how taxable income is determined; sundry other related taxation and business issues; and the country's personal tax regime. The final section of each country summary sets out the Double Tax Treaty and Non-Treaty rates of tax withholding relating to the payment of dividends, interest, royalties and other related payments. While the WWTG should not to be regarded as offering a complete explanation of the taxation issues in each country, we hope readers will use the publication as their first point of reference and then use the services of their local PKF member firm to provide specific information and advice. Services provided by member firms include: Assurance & Advisory; Financial Planning / Wealth Management; Corporate Finance; Management Consultancy; IT Consultancy; Insolvency - Corporate and Personal; Taxation; Forensic Accounting; and, Hotel Consultancy. In addition to the printed version of the WWTG, individual country taxation guides such as this are available in PDF format which can be downloaded from the PKF website at PKF Worldwide Tax Guide 2016/17 1

3 IMPORTANT DISCLAIMER This publication should not be regarded as offering a complete explanation of the taxation matters that are contained within this publication. This publication has been sold or distributed on the express terms and understanding that the publishers and the authors are not responsible for the results of any actions which are undertaken on the basis of the information which is contained within this publication, nor for any error in, or omission from, this publication. The publishers and the authors expressly disclaim all and any liability and responsibility to any person, entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this publication. Accordingly no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances. PKF International Limited (PKFI) administers a family of legally independent firms. Neither PKFI nor the member firms of the network generally accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms. PKF INTERNATIONAL LIMITED JUNE 2016 PKF INTERNATIONAL LIMITED All RIGHTS RESERVED USE APPROVED WITH ATTRIBUTION PKF Worldwide Tax Guide 2016/17 2

4 STRUCTURE OF COUNTRY DESCRIPTIONS A. TAXES PAYABLE COMPANY TAX CAPITAL GAINS TAX BRANCH PROFITS TAX VALUE ADDED TAX (VAT) FRINGE BENEFITS TAX (FBT) LOCAL TAXES OTHER TAXES CIVIL LAW ACTIVITY TAX (CLAT) STAMP DUTY BANK TAX TAXATION OF ASSETS OF SELECTED FINANCIAL INSTITUTIONS SOCIAL SECURITY CONTRIBUTION B. DETERMINATION OF TAXABLE INCOME DEPRECIATION INVENTORY CAPITAL GAINS AND LOSSES DIVIDENDS INTEREST DEDUCTIONS LOSSES FOREIGN SOURCED INCOME INCENTIVES C. FOREIGN TAX RELIEF D. CORPORATE GROUPS E. RELATED PARTY TRANSACTIONS F. WITHHOLDING TAXES G. CFC RULES H. EXCHANGE CONTROL I. PERSONAL TAX J. TREATY AND NON-TREATY WITHHOLDING TAX RATES PKF Worldwide Tax Guide 2016/17 3

5 MEMBER FIRM City Name Contact Information Warsaw Agnieszka Chamera BASIC FACTS Full name: Republic of Poland Capital: Warsaw Main languages: Polish Population: 38.5 million (2013 PRB) Major religion: Christianity Monetary unit: Polish Zloty (PLN) Internet domain:.pl Int. dialling code: +48 KEY TAX POINTS Polish resident companies are subject to corporate income tax on all sources of their worldwide income. Non-residents are taxed only on income derived from Poland. Real property tax and tax on the means of transport (lorries, tractors and trailers) are charged as local taxes. Civil law activity tax (CLAT) applies to contracts of sale, lease or hire, loan agreements, and foundation deeds of a partnership. Foreign tax paid may be credited against Polish tax due, up to the amount of domestic tax. A 'tax capital group may be established by joint stock companies and limited liability companies, where there is 95% ownership. Transfer pricing provisions apply to transactions carried out between related parties. Withholding tax is deducted from interest, royalties and dividends. However, under the EC Parent-Subsidiary Directive, dividend distributions by resident subsidiaries to their non-resident EU parent or EEA parent are exempt provided certain conditions are met. Individuals resident in Poland are taxed on their worldwide income. Non-residents are taxed only on the income derived from work performed in Poland. Bank Tax - taxation of assets of selected financial institutions a new tax existing in Poland from February A. TAXES PAYABLE COMPANY TAX Polish resident companies are subject to corporate income tax (CIT) on all sources of their worldwide income, while non-residents are subject to corporate income tax only on income derived from the territory of Poland. A company is deemed resident in Poland if it is incorporated or managed in Poland. The corporate tax rate for 2016 is levied at 19% of taxable base. In general, the tax year for corporate taxpayers is the calendar year. Taxpayers are obliged to submit their tax declaration, together with the balance sheet, to the fiscal office within three months from the end of their tax year. Taxpayers are obliged to pay tax monthly in advance, based on the current year's income. Taxpayers can also make monthly advance payments based on specific rules if they meet certain conditions. CAPITAL GAINS TAX Capital gains from the disposal of fixed business assets are aggregated with income from other sources and are subject to corporate income tax at the standard CIT rate (19% in 2016). PKF Worldwide Tax Guide 2016/17 4

6 BRANCH PROFITS TAX The tax rate of income derived by a foreign corporation from a branch located in Poland is the same as for Polish entities (19% in 2016). VALUE ADDED TAX (VAT) As a result of Poland's accession to the European Union, the Polish VAT Act has changed in line with the regulations of the 112th Directive and other EU Directives related to VAT. Under the Polish VAT regulations, VAT applies to the following transactions: Supply of goods and services made in Poland for consideration; Export of goods outside the EU; Import of goods from outside the EU; Intra-Community acquisition of goods effected for consideration in Poland, including the movement of goods between different Member States within the same business; Intra-Community supply of goods including the movement of goods between different Member States within the same business. VAT payers who have no registered seat in Poland nor a fixed place of business nor a place of residence are obliged to appoint a fiscal representative. This obligation does not apply to EU residents. The current tax point is the date of delivery or performance of the goods and services, respectively. However, there are some exceptions to this rule. VAT is charged at the standard tax rate of 23% on the supply of most goods and services or at the reduced rates of 8%, 5% and 0%: 8% supplies include, amongst others, hotel services and passenger transport supply, construction and assembly services, restoration and conservation of building included in social housing programs; 5% rate applies to certain foods, e.g. meat, fish, dairy products, vegetables, fruit, bread, etc.; 0% supplies include, amongst others, exports and intra-community supplies of goods and international transport services. In addition, there are a number of exemptions from VAT including education and health care services. However, other than those taxpayers using the cash-basis settlement method, taxpayers may submit tax returns quarterly, having notified the head of a revenue office in writing by the 25th day of the second month of the quarter. A taxpayer who starts carrying out taxable acts during a tax year must make the notification by the 25th day of the month following the month in which it started performing these acts. Taxpayers who have chosen to make quarterly VAT settlements may resume filing monthly tax returns but not until they have submitted at least four quarterly tax returns. FRINGE BENEFITS TAX (FBT) Benefits in kind are included in taxable income of employees. LOCAL TAXES Real property tax and transport tax are charged as local taxes in Poland. Real property tax is paid by owners of real estate. The tax base depends on the type of asset concerned: Buildings - the usable area; Structures - value of the structure; Land - the area. The tax rates are established by the Commune Council. A tax on methods of transport is imposed on lorries, tractors and trailers. The tax rates are also established by the Commune Council. OTHER TAXES CIVIL LAW ACTIVITY TAX (CLAT) Some of the civil acts may be subject to civil law activity tax. These are, in general: Contracts of sale, lease, hire (if not subject to VAT); PKF Worldwide Tax Guide 2016/17 5

7 Loan agreements; Foundation deeds of a partnership or company. CLAT rates are from 0.1% - 2%. The following are not liable to tax: (1) Acts in civil law if, in respect of performing such an act, at least one party is: (a) Liable to goods and services tax; (b) Exempt from goods and services tax, except for: - Contracts of sale and exchange whose object is immovable property or part thereof, or the right of perpetual usufruct, cooperative member's ownership right to a living accommodation, right to a single-family house in a housing cooperative or right to a parking lot in a multi-lot car park or a share in such rights; - Contracts of sale for shares in commercial partnerships or companies; (2) Partnership or company deeds or amendments relating to: (a) Company mergers; (b) Transformation of a company into a different company; (c) Contribution to a company, in exchange for its shares, in some circumstances. Loans granted by a shareholder to a company are also exempt from this tax. STAMP DUTY Transactions subject to Stamp Duty include the following: Bills of exchange; Public administration actions (application forms, certificates, permissions). BANK TAX TAXATION OF ASSETS OF SELECTED FINANCIAL INSTITUTIONS From February 1, 2016 in Poland exist a new tax from a certain financial institutions. According to new tax regulation taxpayers of this tax are domestic banks, branches of foreign banks, branches of credit institutions, cooperative credit unions, national insurance and reinsurance, branches and main branches of foreign insurance and reinsurance companies, as well as lending institutions. The tax rate is % of the tax base per month. The tax base is defined in the Act as the excess of the sum of the value of the assets of the taxpayer resulting from the trial balance within the meaning of the Accounting Act over 4 billion (for domestic banks, branches of foreign banks, branches of credit institutions, cooperative savings and credit unions) or 2 billion ( for national insurance, national reinsurance undertakings, branches of foreign insurance companies and foreign reinsurance main branches of foreign insurance companies and foreign reinsurance) or 200 million (for loan institutions). The tax base in the case of taxpayers with "the banking sector", reduced by the value specified in the Act, including equity. In the case of taxpayers who are associating banks, cooperative banks, the tax base is reduced by the amount of funds collected on all accounts affiliated cooperative banks, led by the taxpayer. In the case of assets acquired by the taxpayer from the Polish National Bank (representing collateral for a loan refinanced by the bank) all of the assets is deductible from the tax base. For other taxpayers, the tax base is reduced by the value of assets in the form of Treasury securities within the meaning of art. 95 paragraph. 1 of the Act on public finance. Taxpayers will be required, without call on the competent tax authority submit tax returns, calculate and pay tax on account of the competent tax office for monthly periods in the 25th day of the month following the month to which the tax relates. The first settlement period for which taxpayers make the calculation and payment of tax and submit a tax return is February SOCIAL SECURITY CONTRIBUTION Resident individuals and employees within the territory of Poland are subject to obligatory old age and disability insurance. Rates of social security contributions are as follows: PKF Worldwide Tax Guide 2016/17 6

8 Employer Employee Old age pension 9.76% 9,76% Disability insurance 6.50% 1.50% Sickness benefits % Accident insurance 0.67 % 3.86 % - Health insurance % Contributions to the old age and disability pensions are paid by the employer and employee. The 9.76% employee contribution is transferred to the Open Pension Fund. Contributions by employees are based on their gross income for income tax purposes. The ceiling on income on which contributions for the old age pension and disability insurance in 2016 is PLN 121,650. There is no ceiling for health and maternity insurance. The employer withholds the employees' contributions. Employees' contributions are deductible for income tax purposes and employers' contributions are deductible for corporate income tax purposes. The contribution for accident insurance is paid by the employer. The contribution for sickness benefit is paid by the employee. In addition: 9% of gross pay (less contributions for old age and disability insurance) for obligatory health insurance contribution (covering medical expenses) is payable by employees; 2.45% of gross pay is paid by the employer to the Labour fund; 0.10% of gross pay is paid by the employer for the Guaranteed Welfare Benefits Fund. B. DETERMINATION OF TAXABLE INCOME Corporate entities are subject to corporate income tax on the net profit shown on their respective yearly Balance Sheet, computed in accordance with the statutory accounting and bookkeeping rules, after adjustment for deductions and additions provided under the tax law. Generally, expenses incurred for the production of income are allowed as deductions. It is not possible to deduct expenses which are paid more than 30 days after the due date (or up to 90 days after the invoice date for expenses payable at least 60 days after the invoice date). DEPRECIATION Current rates range from 1.5% to 30% depending on the type of asset. As a general rule, the straightline method must be applied although the reducing method is possible under some conditions. INVENTORY Stock in trade, or inventory, is valued at its historic cost price or market value. The cost of inventory may be calculated at a standard cost, at a weighted average cost, or on the UFO or FIFO basis, as long as the method selected is used consistently. CAPITAL GAINS AND LOSSES Capital gains and losses are subject to CIT tax at a rate of 19% for DIVIDENDS Dividends received from resident companies are taxed separately at a rate of 19% unless the participation exemption applies (see Section F below). The tax is withheld by the distributing company. Dividends may be distributed only from net profits of the company. Sums allocated for PKF Worldwide Tax Guide 2016/17 7

9 distribution among shareholders cannot be deducted from the taxable base. INTEREST DEDUCTIONS Interest is deductible on an accrual basis. Thin capitalisation rules apply with respect to interest from credits and loans from related parties. New thin capitalisation rules were introduced and became effective from 1 January 2015 and apply not only to loans between direct related parties ( mother company to daughter company) but also to transactions between indirect related parties - it means that parties which possess indirectly no less than 25% of share capital of taxpayer or of share capital of lender. The new thin capitalization ratio is 1:1, but the subject to verification is a total value of debt to the related parties to the value of equity (not only to the shareholder capital). The term total value of debt to the related parties does not only include the value of loan, but also other debts (for example from trade transaction). The value of equity for calculation of this capitalisation should be determined on the last day of the month preceding the interest payment. For this value will not be accounted for the equity revaluation reserve and part of the equity coming from subordinated loans received. In addition, equity will not include the value of the share capital of the company, not transferred effectively to the capital or covered with debts resulting from loans and interest income on these loans (which are vested in shareholders against the company), as well as intangible assets, which are not subjects to the tax depreciation. LOSSES Losses from a given tax year can only be offset against the taxable income in the five subsequent tax years, but the amount deducted in any one year cannot exceed 50% of the loss incurred in the previous five tax years (including those amounts already utilised against profits). FOREIGN SOURCED INCOME Resident companies are subject to tax on their worldwide income, including foreign sourced income and gains. However, double tax agreements may apply to reduce or extinguish the tax liability imposed under domestic tax law. INCENTIVES Polish law provides for corporate income tax incentives, such as special economic zones (SEZs). In principle, companies operating within special economic zones may enjoy tax holidays, which involve tax exemption from corporate income tax within certain time limits. Investments in SEZs may be conducted subject to a permit issued by the authorities. There are now 14 such zones in Poland: Mielecka, Katowicka, Suwalska, Legnicka, Walbrzyska, Lodzka, Kostrzynsko-Slubicka, Slupska, Tarnobrzeska, Warminsko-Mazurska, Starachowicka, Kamiennogorska, Pomorska and Krakowska (Krakow Technology Park). Undertaking business activity within a SEZ requires a special permit issued by the Minister of Economy or the authorities of the SEZ. Regulations applicable to a particular SEZ may specify the minimum investment value required and/or the number of employees that must be hired to benefit from the tax exemption. C. FOREIGN TAX RELIEF Foreign sourced income received by a resident company is included in its taxable base unless otherwise provided by the double tax treaty. Taxes paid abroad may be credited against the tax due. However, the amount of tax credit may not exceed the amount of domestic tax that would have been due on the income derived abroad, had it been derived in Poland. PKF Worldwide Tax Guide 2016/17 8

10 D. CORPORATE GROUPS In accordance with the Corporate Income Tax Act, a tax capital group" may be established and accordingly corporate tax is then due on the income of the group as a whole. Such a group can be established only by joint stock companies and limited liability companies. The parent company must own at least 95% of the equity of each of the dependent companies. There are also other conditions which must be met to establish the 'tax capital group', such as: An average capital of all companies not lower then PLN 1 million; Capital group agreement period - minimum three years; Registration of the agreement with the tax office; No outstanding tax liabilities to state budget; Profitability ratio of the group not lower than 3% tor each year; and, All of the companies included in the group must be registered in Poland. E. RELATED PARTY TRANSACTIONS Transfer pricing provisions apply to transactions carried out between related parties (broadly where one partly controls the other or they are under common control). The provisions apply to both transactions between a Polish and a non-polish resident entity and to those between Polish entities. Transfer pricing provisions also apply to partnerships which include not only partnerships but also joint ventures and similar agreements notably where the partnership has dealings with one of the partnership, joint venture or similar entity partners or associates and they are are domiciled, resident or managed in a territory or in a country engaged in harmful tax competition. In such cases, the partnership is obliged to prepare transfer pricing documentation of such transactions. In the case of a partnership, the transfer pricing documentation obligation includes a partnership agreement in which the total value of the contributions made by the partners exceeds EUR 50,000. In the case of a joint venture or other similar agreement, the limit refers to the value of the joint venture as defined in the agreement, or in the absence of the agreement to determine this value, to the expected date of the agreement jointly implemented the project. From 2016, the largest Polish groups of companies (with consolidated income exceeding 750 million euros) is obliged to draw up statements of income, tax paid, and places of business. Based on the specimen form published, taxpayers will have to provide a list of entities in their respective group, countries where they have their seats, their main business activity, the tax paid and profit earned, the number of employees, and, disclose their fixed assets. Analogous statements will be drawn up by groups of companies in other countries, while the taxing authorities will exchange this information pursuant to the OECD guidelines in this respect. Such statements for relevant national Polish entities have to be provided within 12 months from the end of the relevant tax year. F. WITHHOLDING TAXES Withholding tax is deducted from interest, royalties and dividends. On payments to non-residents, it is deducted at 19% on dividends and 20% on royalties and interest payments, unless reduced by a double tax treaty. However, under the provisions implementing the EC Parent-Subsidiary Directive, dividend distributions by resident subsidiaries to their non-resident EU parent or EEA (European Economic Area) parent companies or resident parent company are exempt. In order to benefit from this regulation, the following conditions must be met: The resident parent company or EU parent or EEA parent company in receipt of the dividends must be subject to corporate income tax in Poland or the EU member country or EEA country on worldwide income and must not use an exemption to prevent it from being taxed on the dividends; The parent company must have owned at least 10% of the capital in the Polish company continuously for a period of at least two years. According to new regulation from January 1st 2016 the provisions concerning the tax exemption on dividend payment does not apply if: 1) the achievement of income (revenue) from dividends and other income from a share in the profits of legal entities takes place in connection with the conclusion of the contract or making any other legal action, or several related legal actions whose main or one of the main objectives was to obtain exemption from income tax and getting this exemption does not result in PKF Worldwide Tax Guide 2016/17 9

11 only eliminate double taxation of income (revenue) and 2) activities referred to in point 1 above, have no real character. For the purposes of above new tax regulation shall be presumed that the contract or other legal action has no real character to the extent that is not carried out for legitimate economic reasons. In particular, this applies to a situation where in a transaction referred to in point 1 above, is transferred to the ownership of shares (shares) of the company paying the dividend or the company generates revenue (income), then paid in the form of dividends or other income from the share in profits of legal persons. The EC Interest and Royalties Directive was implemented into domestic law on 1 July The rate was 5% between 1 July 2009 and 30 June From 1 July 2013 the rate is 0%. In order to benefit from this regulation, the following conditions must be met: The payer must be a company which is resident in Poland or is resident in another EU member state and has a taxable permanent establishment in Poland; The payee must be a company, which is tax resident in an EU Member State other than Poland; The company which is receiving the income must be subject to tax on its worldwide income; The Polish company must have owned at least 25% of the capital of the EU company continuously for a period of at least two years; or the EU company must have owned at least 25% of the capital of the Polish company continuously for a period of at least two years. G. CFC RULES Polish taxpayers are subject to Polish tax on income earned by their CFCs even if the income is not distributed by the non-polish company. The tax rate for such income is 19%. Subsidiaries subject to CFC rules are those: With passive income (e.g. from dividends, shares, copyrights); Which are taxed at a rate lower than 14.25%; and, In which the Polish parent company holds at least 25% of shares directly or indirectly. Subsidiaries in tax havens are also treated as CFCs. The CFC provisions will not apply if the foreign corporation conducts real business activities. H. EXCHANGE CONTROL With effect from 2003, most foreign exchange transactions are allowed by the Foreign Exchange Act, and do not require a special permit from the National Bank of Poland. Domestic persons doing business in Poland, which normally operates wholly in Zlotys, generally may hold foreign currency accounts for foreign receivables. Invoices and services purchased abroad may be paid in foreign currencies at the official exchange rate on the day that the payment is made or from their foreign currency accounts. I. PERSONAL TAX Polish resident taxpayers are subject to tax on their worldwide income, subject to double tax treaties. Non-residents are taxed only on the income derived from work performed within the territory of Poland. Tax is levied on all taxable income at progressive tax rates. The tax scale for 2016 is as follows: Tax base Rate Up to PLN 85,528 18% minus reducing amount of PLN Over PLN 85,528 PLN 14, % of surplus over PLN 85,528 When calculating the income, the so-called tax-free amount is taken into account (in PLN 3,091). Personal income tax is reduced if, in the financial year, the taxpayer incurred expenditure as specified in the law, within the proper limits. Payers of the income tax referred to in the PIT law are obliged to calculate and collect tax payments in advance, within the year, and transfer them to the bank account of the relevant tax office by the 20th of the month following the month when the tax PKF Worldwide Tax Guide 2016/17 10

12 advance payment was collected. Taxpayers are obliged to file an annual tax return by 30 April of the following year. This obligation does not apply to taxpayers for whom the annual tax return is made by the tax collector. The submission of the tax return has to be accompanied by payment of the difference between the income tax due, as calculated in the tax return, and the sum of any tax paid in advance. The income tax arising from the tax return is the tax due for a given year, unless the tax office issues a decision establishing a different amount of due tax. Individuals who receive inheritances or gifts are liable to tax for the portion they receive. Polish citizens and persons who are domiciled in Poland are also liable to this tax if the property received by them is located abroad. Gifts and inheritances of property located in Poland are exempt if neither party is a Polish citizen or domiciled in Poland. The rates are progressive depending on the category of taxpayer and value of property received and will vary from 3% to 20%. J. TREATY AND NON-TREATY WITHHOLDING TAX RATES Dividends¹ Interest Royalties Non-treaty countries Treaty countries: Albania 5/ Armenia Australia Austria 5/ Azerbaijan Bangladesh 15/ Belarus 10/ Belgium 5/ Bosnia and Herzegovina 15/ Bulgaria Canada 5/5/ /10 Chile 15/5 15 5/15 China /10 Croatia 5/ Cyprus 0/5 5 5 Czech Republic Denmark 0/5/ Egypt Estonia 5/ Finland 5/ France 5/15 0 5/10 Georgia Germany 5/ Greece 19² Hungary Iceland 15/ India Indonesia 10/ Iran PKF Worldwide Tax Guide 2016/17 11

13 Dividends¹ Interest Royalties Ireland 0/ Israel 5/10 5 5/10 Italy Japan Jordan Kazakhstan 10/ Korea 5/ Kuwait 5/0 0/5 15 Kyrgyzstan Latvia 5/ Lebanon Lithuania 5/ Luxembourg 0/ Macedonia 5/ Malaysia /( ) 4 Malta 0/ Mexico 5/15 5/15 10 Moldova 5/ Mongolia Montenegro 5/ Morocco 7/ Netherlands 5/ New Zealand Norway 0/ Pakistan 15/ /20 Philippines 10/ Portugal 10/ Qatar Romania 5/ Russia Saudi Arabia Serbia 15/ Singapore 5/10 5 2/5 Slovak Rep. 0/5 5 5 Slovenia 5/ South Africa 5/ Spain 5/ Sri Lanka /10 Sweden 5/ Switzerland Syria Tajikistan 5/ Thailand /15 Tunisia 5/ Turkey 10/ PKF Worldwide Tax Guide 2016/17 12

14 Dividends¹ Interest Royalties Ukraine 5/ United Arab Emirates United Kingdom 0/ United States 5/ Uzbekistan 5/ Vietnam 10/ /15 Zimbabwe 10/ NOTES: 1. Different treaty rates may apply depending on whether the dividend is received by a company or individual, or the percentage interest in the Polish company held by the recipient of the dividend. It is important to consult the relevant treaty for further details. 2. The domestic rate applies. 3. The domestic rate applies, apart from where the dividend is received by a company holding at least one-third of the capital of the Polish company. 4. Domestic rate applies to royalties for the use of, or the right to use cinematograph films, or works recorded on tapes for television or broadcasting. PKF Worldwide Tax Guide 2016/17 13

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