UNITED STATES - POLAND INCOME TAX CONVENTION
Convention signed at Washington October 8, 1974;
Ratification advised by the Senate of the United States of America November 18, 1975;
Ratified by the President of the United States of America December 15, 1975;
Ratified by the Polish People's Republic June 10, 1976;
Proclaimed by the President of the United States of America July 23, 1976;
Entered into force July 22, 1976;
GENERAL EFFECTIVE DATE UNDER ARTICLE 25: 1 JANUARY 1974
TABLE OF ARTICLES
Article 1----------------------------------Scope of Convention
Article 2----------------------------------Taxes Covered by the Convention
Article 3----------------------------------General Definitions
Article 4----------------------------------Fiscal Residence
Article 5----------------------------------General Rules of Taxation
Article 6----------------------------------Permanent Establishment
Article 7----------------------------------Income from Real Property
Article 8----------------------------------Business Profits
Article 9----------------------------------Shipping and Air Transport
Article 10--------------------------------Related Persons
Article 11--------------------------------Dividends
Article 12--------------------------------Interest
Article 13--------------------------------Royalties
Article 14--------------------------------Capital Gains
Article 15--------------------------------Independent Personal Services
Article 16--------------------------------Dependent Personal Services
Article 17--------------------------------Teachers
Article 18--------------------------------Students and Trainees
Article 19--------------------------------Governmental Functions
Article 20--------------------------------Relief from Double Taxation
Article 21--------------------------------Nondiscrimination
Article 22--------------------------------Mutual Agreement Procedure
Article 23--------------------------------Exchange of Information
Article 24--------------------------------Diplomatic and Consular Officers
Article 25--------------------------------Entry into force
Article 26--------------------------------Termination
Letter of Submittal---------------------of 11 December, 1974
Letter of Transmittal-------------------of 23 January, 1975
Notes of Exchange---------------------of 8 October, 1974
The “Saving Clause”-------------------Paragraph 3 of Article 5
MESSAGE
FROM
THE PRESIDENT OF THE UNITED STATES
TRANSMITTING
THE CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED STATES OF
AMERICA AND THE GOVERNMENT OF THE POLISH PEOPLE'S REPUBLIC FOR THE
AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL
EVASION WITH RESPECT TO INCOME, AND A RELATED EXCHANGE OF NOTES,
SIGNED AT WASHINGTON ON OCTOBER 8, 1974
LETTER OF SUBMITTAL
DEPARTMENT OF STATE,
Washington, December 11, 1974.
THE PRESIDENT,
The White House.
The PRESIDENT: I have the honor to submit to you, with a view to its transmission to the
Senate for advice and consent to ratification, the Convention between the Government of the
United States of America and the Government of the Polish People's Republic for the Avoidance
of Double Taxation and the Prevention of Fiscal Evasion with Respect to Income, and a related
exchange of notes, signed at Washington on October 8, 1974.
The Convention deals mainly with Federal income taxes in the case of the United States and
with substantially similar income taxes specified in Article 2 (2) (a) in the case of Poland. The
provision relating to nondiscrimination applies, however, to taxes of every kind imposed at the
national, state, or local 1evel.
This Convention is similar to other recent tax conventions concluded by this government. It
incorporates the same basic principles with respect to the taxation of business income, personal
service income and income from investments, and includes provisions for nondiscriminatory tax
treatment and for reciprocal administrative cooperation.
Pursuant to this Convention profits derived by a business enterprise of one country would be
subject to taxation by the other country only to the extent that the profits are attributable to a
“permanent establishment”' in that other country. Employees of a firm are not taxable by the host
country on their personal service income unless the services are performed there during a stay
lasting longer than six months during the taxable year concerned. Withholding taxes imposed on
income going from one country to residents of the other country will be limited to 15 percent on
portfolio dividends, 5 percent on dividends from a share holding of 10 percent or more, and 10
percent on royalties and film rentals, and interest will be exempt from tax. In the absence of a
convention the United States tax rate has been 30 percent of the gross amount, and the Polish tax,
although computed at graduated rates, also reaches 30 percent of the gross amount.
A technical memorandum explaining in detail the provisions and effect of the Convention is
being prepared by the Department of the Treasury and will be submitted to the Senate Foreign
Relations Committee for consideration in connection with the Convention.
Upon entry into force, this Convention will be effective from January 1, 1974, and will
remain in force for a minimum period of five years. After the initial five year period it will
remain in force indefinitely until terminated by either State.
The Department of the Treasury, with the cooperation of the Department of State, was
primarily responsible for the negotiation of the Convention. It has the approval of both
Departments.
Respectfully submitted,
ROBERT S. INGERSOLL.
LETTER OF TRANSMITTAL
THE WHITE HOUSE, January 23, 1975.
To the Senate of the United States:
I transmit herewith, for Senate advise and consent to ratification, the Convention between the
Government of the United States of America and the Government of the Polish People’s
Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with
Respect to Income as well as a related exchange of notes.
I also transmit for the information of the Senate, the report of the Department of State with
respect to this Convention.
The Convention was signed on October 8, 1974, during the visit to Washington of Polish
First Secretary Edward Gierek and is the first income tax convention between the two countries.
The Convention is similar to other income tax conventions recently concluded by this
Government and it is expected to encourage and support the growing interest in bilateral trade
and investment between the two countries. It provides rules of tax jurisdiction, reduces or
eliminates tax liability in certain cases, ensures nondiscriminatory tax treatment and provides for
administrative cooperation.
I recommend that the Senate give this Convention and related exchange of notes early and
favorable consideration and give its advice and consent to ratification.
GERALD R. FORD.
BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A PROCLAMATION
CONSIDERING THAT:
The Convention between the United States of America and the Polish People's Republic for
the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on
income and a related exchange of notes were signed at Washington on October 8, 1974, the texts
of which Convention and related notes, are hereto annexed;
The Senate of the United States of America by its resolution of November 18, 1975, two-
thirds of the Senators present concurring therein, gave its advice and consent to ratification of the
Convention and related notes;
The Convention and related notes were ratified by the President of the United States of
America on December 15, 1975, in pursuance of the advice and consent of the Senate, and was
duly ratified on the part of the Polish People's Republic on June 10, 1976;
It is provided in Article 25 of the Convention that the Convention shall enter into force thirty
days after the date of exchange of instruments of ratification, with effectiveness from January 1,
1974, with respect to income;
The instruments of ratification of the Convention were exchanged at Warsaw on June 22,
1976; and accordingly the Convention and related notes, enter into force on July 22, 1976, with
effectiveness from January 1, 1974, with respect to income;
NOW, THEREFORE, I, Gerald R. Ford, President of the United States of America, proclaim
and make public the Convention and related notes, to the end that they shall be observed and
fulfilled with good faith on and after July 22, 1976, by the United States of America and by the
citizens of the United States of America and all other persons subject to the jurisdiction thereof.
IN TESTIMONY WHEREOF, I have signed this proclamation and caused the Seal of the
United States of America to be affixed.
DONE at the city of Washington this twenty-third day of July in the year of our Lord one
thousand nine hundred seventy-six and of the Independence of the United States of America the
two hundred first.
By the President:
GERALD R. FORD
Henry A. Kissinger
Secretary of State
CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED STATES OF
AMERICA AND THE GOVERNMENT OF THE POLISH PEOPLE'S REPUBLIC FOR THE
AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME
The Government of the United States of America and the Government of the Polish People's
Republic, desiring to further expand and facilitate mutual economic relations, have resolved to
conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion
with respect to taxes on income and have agreed upon the following: