U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

39–112 

" ! SENATE 113TH CONGRESS

2d Session 

TREATY DOC. 

2014

113–5 

CONVENTION ON TAXES WITH THE REPUBLIC OF 

POLAND 

MESSAGE 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

THE CONVENTION BETWEEN THE UNITED STATES OF AMERICA 

AND THE REPUBLIC OF POLAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION 

WITH RESPECT TO TAXES ON INCOME, SIGNED ON FEBRUARY 

13, 2013, AT WARSAW 

MAY 20, 2014.—Treaty was read the first time, and together with the 

accompanying papers, referred to the Committee on Foreign Relations 

and ordered to be printed for the use of the Senate 


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(III)

LETTER OF TRANSMITTAL 

THE WHITE HOUSE, May 20, 2014. 

To the Senate of the United States: 

I transmit herewith, for the advice and consent of the Senate to 

its ratification, the Convention between the United States of America and the Republic of Poland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes 

on Income, signed on February 13, 2013, at Warsaw (the ‘‘proposed 

Convention’’). I also transmit for the information of the Senate the 

report of the Department of State, which includes an overview of 

the proposed Convention. 

The proposed Convention replaces the existing Convention, 

signed in 1974, and was negotiated to bring United States-Poland 

tax treaty relations into closer conformity with current U.S. tax 

treaty policies. For example, the proposed Convention contains provisions designed to address ‘‘treaty shopping,’’ which is the inappropriate use of a tax treaty by residents of a third country, that the 

existing Convention does not. Concluding the proposed Convention 

with Poland has been a top priority for the tax treaty program at 

the Department of the Treasury. 

I recommend that the Senate give early and favorable consideration to the proposed Convention and give its advice and consent 

to its ratification. 

BARACK OBAMA. 


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(V)

LETTER OF SUBMITTAL 

DEPARTMENT OF STATE, 

Washington, February 5, 2014. 

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 United States of America and the 

Republic of Poland for the Avoidance of Double Taxation and the 

Prevention of Fiscal Evasion with Respect to Taxes on Income (the 

‘‘proposed Convention’’), signed on February 13, 2013, at Warsaw. 

The proposed Convention was negotiated to bring U.S.-Poland tax 

treaty relations into closer conformity with current U.S. tax treaty 

policies. For example, the proposed Convention contains provisions 

designed to address ‘‘treaty shopping,’’ which is the inappropriate 

use of a tax treaty by residents of a third country. The existing 

Convention with Poland, signed in 1974, does not contain treaty 

shopping protections and, as a result, is susceptible to abuse by 

third-country investors. For this reason, concluding the proposed 

Convention that would replace the existing Convention has been a 

top priority for the Treasury Department’s tax treaty program. An 

overview of key provisions of the proposed Convention is enclosed 

with this report. 

The proposed Convention is self-executing. The Department of 

the Treasury and the Department of State cooperated in the negotiation of the proposed Convention, and the Department of the 

Treasury joins the Department of State in recommending that the 

proposed Convention be transmitted to the Senate as soon as possible for its advice and consent to ratification. 

Respectfully submitted, 

JOHN F. KERRY. 

Enclosures: As stated. 


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UNCLASSIFIED 

Overview of the Proposed Income Tax Convention 

Between the United States and Poland 

The proposed income tax Convention with Poland (proposed Convention) 

was negotiated to bring the current convention, concluded in 1974 (current 

Convention), into closer conformity with current U.S. tax treaty policy as reflected 

in the Treasury Department's 2006 Model Income Tax Convention (U.S. Model). 

There are, as with all bilateral tax treaties, some variations from these nonns. In 

the proposed Convention, these differences reflect particular aspects of Polish law 

and treaty policy, the interaction of U.S. and Polish law, and U.S.-Poland 

economic relations. 

Anti-Abuse Provisions 

The proposed Convention contains a comprehensive "Limitation on 

Benefits" article designed to address "treaty shopping," which is the inappropriate 

use of a tax treaty by residents of a third country. The current Convention does not 

contain treaty shopping protections and, for this reason, revising the current 

Convention has been a top priority for the Treasury Department's tax treaty 

program. Beyond the standard provisions in the U.S. Model, the new Limitation 

on Benefits article includes a provision granting so-called "derivative benefits" 

similar to the provision included in all recent U.S. tax treaties with countries that 

are members ofthe European Union. The new Limitation on Benefits article also 

contains a special rule for so-called "headquarters companies" that is identical to 

what is reflected in a number of other tax treaties. 

The proposed Convention incorporates updated rules that provide that a 

former citizen or long-term resident of the United States may, for the period often 

years following the loss of such status, be taxed in accordance with the laws of the 

United States. The proposed Convention also coordinates the U.S. and Polish tax 

rules to address the "mark-to-market" provisions enacted by the United States in 

2007 that apply to individuals who relinquish U.S. citizenship or terminate 

long-tenn residency. 

Taxation ofInvestment Income 

The withholding rates on investment income in the proposed Convention are 

in most cases the same as or lower than those in the current Convention. The 

proposed Convention provides for reduced source-country taxation of dividends 

distributed by a company resident in one Contracting State to a resident of the 

UNCLASSIFIED 
VII


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UNCLASSIFIED 

- 2 -

other Contracting State. The proposed Convention generally allows for taxation at 

source of 5 percent on direct dividends (i.e., where a 10 percent ownership 

threshold is met) and 15 percent on all other dividends. Additionally, the proposed 

Convention provides for an exemption from withholding tax on certain 

cross-border dividend payments to pension funds. 

The proposed Convention updates the treatment of dividends paid by U.S. 

Regulated Investment Companies (ruCs) and Real Estate Investment Trusts 

(REITs) to prevent the use of structures designed to inappropriately avoid U.S. tax. 

The proposed Convention provides for an exemption from source-country 

taxation for the following classes of interest: (1) interest that is either paid by or 

paid to governments (including central banks); (2) interest paid in respect of a loan 

made to or provided; (3) guaranteed or insured by a government; (3) statutory body 

or export financing agency; (4) certain interest paid to a pension fund; (5) interest 

paid to a bank or an insurance company; and (6) interest paid to certain other 

financial enterprises that are unrelated to the payer of the interest. The proposed 

Convention provides for a limit of 5 percent on source-country withholding taxes 

on all other cross-border interest payments. In addition, consistent with current 

U.S. tax treaty policy, source-country tax may be imposed on certain contingent 

interest and payments from a U.S. real estate mortgage investment conduit. 

The proposed treaty provides a limit of 5 percent on source-country 

withholding taxes on cross-border payments of royalties. The definition of the 

term "royalty" provided in the proposed Convention includes payments of any kind 

received as a consideration for the use of, or the right to use any industrial, 

commercial or scientific equipment. 

The taxation of capital gains under the proposed Convention generally 

follows the U.S. Model. Gains derived from the sale ofreal property and from real 

property interests may be taxed by the State in which the property is located. 

Likewise, gains from the sale of personal property forming part of a permanent 

establishment situated in a Contracting State may be taxed in that State. All other 

gains, including gains from the alienation of ships, boats, aircraft and containers 

used in international traffic and gains from the sale of stock in a corporation, are 

taxable only in the State of residence of the seller. 

UNCLASSIFIED 
VIII


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Taxation of Business Income 

UNCLASSIFIED 

- 3 -

Consistent with U.S. tax treaty policy, the proposed Convention employs the 

Organization for Economic Cooperation and Development-approved approach for 

attributing profits to a permanent establishment. The source country's right to tax 

such profits is generally limited to cases in which the profits are attributable to a 

permanent establishment located in that country. The proposed Convention 

defines a "permanent establishment" in a way that grants rights to tax business 

profits that are consistent with those found in the U.S. Model. 

The proposed Convention preserves the U.S. right to impose its branch 

profits tax on U.S. branches of Polish corporations. The proposed Convention also 

accommodates a provision of U.S. domestic law that attributes to a permanent 

establishment income that is earned during the life of the permanent establishment, 

but is deferred, and not received until after the permanent establishment no longer 

exists. 

Taxation of Personal Services Income 

The proposed Convention differs from the current Convention's rules 

regarding the taxation of independent personal services. Under the proposed 

Convention an enterprise performing services in the other country will become 

taxable in the other country only ifthe enterprise has a fixed place of business. 

The rules for the taxation of income from employment under the proposed 

Convention are consistent with the U.S. Model. The general rule is that 

employment income may be taxed in the State where the employment is exercised 

unless three conditions constituting a safe harbor are satisfied. 

Pensions, Social Security, Annuities, Alimony, and Child Support 

The proposed Convention contains rules regarding the taxation of pensions, 

social security payments, annuities, alimony and child support that are generally 

consistent with the U.S. Model. Under the proposed Convention, pensions and 

annuities are taxable only in the country of residence of the beneficiary. The 

proposed Convention provides for exclusive source-country taxation of social 

security payments. The proposed Convention provides that payments of alimony 

and child support shall be exempt from tax in both Contracting States. 

UNCLASSIFIED 
IX


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Exchange ofInfonnation 

UNCLASSIFIED 

- 4-

Consistent with U.S. tax treaty policy and the international standard for tax 

infonnation exchange, the proposed Convention provides for the exchange 

between the tax authorities of each country of information foreseeably relevant to 

carrying out the provisions of the proposed Convention or the domestic tax laws of 

either country. The proposed Convention allows the United States to obtain 

information (including from financial institutions) from Poland whether or not 

Poland needs the information for its own purposes. 

Entry into Force 

The proposed Convention will enter into force when both the United States 

and Poland have notified each other that they have completed all of the necessary 

procedures required for entry into force. The proposed Convention will have 

effect, with respect to taxes withheld at source, for amounts paid or credited on or 

after the first day of the second month next following the date of entry into force of 

the proposed Convention, and with respect to other taxes, for taxable years 

beginning on or after the first day of January next following the date of entry into 

force of the proposed Convention. The current Convention will, with respect to 

any tax, cease to have effect as of the date on which this proposed Convention has 

effect with respect to such tax. 

The proposed Convention provides that an individual who was entitled to the 

benefits under the provisions for Teachers, Students and Trainees or Government 

Functions of the current Convention at the time of entry into force of the proposed 

Convention shall continue to be entitled to such benefits until such time as the 

individual would cease to be entitled to such benefits if the current Convention 

remained in force. 

UNCLASSIFIED 
X


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UNCLASSIFIED 

Executive Summary of Proposed U.S.-Poland Income Tax Convention 

The proposed income tax Convention with Poland (proposed Convention) was 

negotiated to bring the current Convention, concluded in 1974 (current Convention), 

into closer conformity with current U.S. tax treaty policy. 

Anti-Abuse Provisions: The proposed Convention contains comprehensive 

provisions designed to address "treaty shopping," which is the inappropriate use of a 

tax treaty by residents of a third country. The current Convention does not contain 

treaty shopping protections and, as a result, is susceptible to abuse by 

third-country investors in recent years. For this reason, revising the current 

Convention has been a top priority for the Treasury Department's tax treaty program. 

Taxation ofInvestment Income and Business Income: The withholding rates on 

investment income in the proposed Convention are in most cases the same as or lower 

than those in the current Convention. The proposed Convention provides for reduced 

source-country taxation of dividends distributed by a company resident in one 

Contracting State to a resident of the other Contracting State. The proposed 

Convention generally allows for taxation at source of 5 percent on direct dividends 

(i.e., where a 10 percent ownership threshold is met) and 15 percent on all other 

dividends. Additionally, the proposed Convention provides for an exemption from 

withholding tax on certain cross-border dividend payments to pension funds. The 

proposed Convention provides an exemption from source-country withholding on 

many classes of interest, and a limit of 5 percent withholding on interest not eligible 

for the exemption. The proposed Convention provides a limit of 5 percent on source 

country taxation of royalty payments. Consistent with U.S. tax treaty policy, the 

proposed Convention employs the Organization for Economic Cooperation and 

Development-approved approach for attributing profits to a pennanent establishment. 

The source country's right to tax such profits is generally limited to cases in which 

the profits are attributable to a permanent establishment located in that country. 

Pensions, Social Security, Annuities, Alimony, and Child Support: The proposed 

Convention provides that pensions and annuities are taxable only in the country of 

residence of the beneficiary, and it provides for exclusive source-country taxation of 

social security payments. Under the proposed Convention, payments of alimony and 

child support are exempt from tax in both States. 

Exchange ofInformation: Consistent with U.S. tax treaty policy, the proposed 

Convention provides for the full exchange of information between the competent 

authorities to facilitate the administration of each country's tax laws. 

UNCLASSIFIED 
(1) 


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CONVENTION BETWEEN 

THE UNITED STAm or AMERICA 

AND THE REPUBLIC OF POLAND 

FOR THE AVOIDANCE OF OOUBLE TAXATION AND THE 

PREVENTION OF FISCAL EVASION 

WITH RESPECT TO TAXES ON ll'fCOME 

The uni!ed SWClI of America and the Republic of Polam!, desiring to conelude a 

Conv<:ntion fer the avoidance of double l1IXaiion and the prevention of fis<al e"",ion with 

respect to l1IXes on income, have agrud as follows: 
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Article 1 

GENERAL SCOPE 

I. This Convention shall apply only to persons who are residents of one or both of the 

Contracting States, except as othelwise provided in the Convention. 

2. This Convention shall not restrict in any IlllIllnet any benefit now or hereafter 

accorded: 

3. 

a) by the laws of either Contracting State; or 

b) by any other agreement to which both Colltraeling States are parties. 

a) Notwithstanding the provisions of subpa!'llgtapb b) of paragraph 2 of this 

Article: 

i} for purposes of paragraph.3 of Article xxn (Consultation) (If the 

General Agrmnenl on Trade in Services (OATS), the Contracting States agree 

!hilt any question arising ll$ to the lnteIprctation or application of this 

Convention and. in particular, whether a taxation measure is within the scope 

of this Convention, sball be determined exclusively in aecordaru:e with the 

provisions of Article 25 (Mutual Agreement Procedure) of this Convention; 

and 

ii) the provisions of Article XVII of the 0eneraI Agreement on Trade in 

Services (OATS) shall not apply to a taxation measure unless the competent 

authorities agree that the measure is not within the scope of Article 24 (NonDiscrimination) of this Convmtion. 

b} For the purposes of this paragraph, a umeasureff is a law, regulation, rule, 

procedure. decision, administrative action, or any similar provision or aclion. 

4. Notwithstanding the provisions of paragrapb 2, and elt\lCpt to the extent provided in 

paragraph 5, this Convention shall not affect the taxation by a Contracting State of its 

residents (as determined under Article 4 (Resident» and its citi2ens. Notwithstanding the 

other provisions of this Convention, a former citizen or fonner·tong-tenn resident of 1l 

Contracting State may. for the period of ten years following the loss of such status, be taxed in 

accordance with the laws of tba! Contracting State, but only on income from souroe! within 
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that Contracting State (including income deemed to arise from sources within that Contracting 

State under the domestic law of that Contracting State). 

5. The provisions of paragraph 4 shall not affect: 

6. 

a) the benefits conferred by a Contracting Stale under paragraph 2 of Article 9 

(Associated Enterprises), paragraphs 2, 3 and 5 of Article 18 (Pensions. Social 

Security. Annuities, Alimony, and Child Support), and Articles 23 (Elimination of 

Double Taxation), 24 (Non-Discrimination), and 25 (Mutual Agreement Procedure); 

and 

b) the benefits conferred by a Contracting State under Articles 19 (Government 

Service), 20 (Students and Trainees), and 27 (Members of Diplomatic Missions and 

Consular Posts). upon individuals who arc neither citizens of, nor have been admitted 

for pernument residence in, that State. 

a) Except as provided in subparagraph b), an item of income. profit or gain 

derived through an entity that is fiscally transparent under the laws of either 

Contracting State shall be considered to be derived by a resident of a Contracting State 

to the extent that the item is treated for pwposes of the taxation law of such 

Contrllcting State lIS the income, profit or pin of a resident. 

b) Subparagraph a) sball not apply to an item of income, profit or gain if the 

entity described in su~ a) ill not fiscally 1rII!lSp8rent under the laws of the 

State in which the income, profit or gain arises, is organized in a third state, and is 

eligible for benefits under a convention for the avoidance of double Wcation between 

the third state and the State in which the income, profit or gain ariw.l with respect to 

that item of income, profit or gain that axe more favorable than the benefits provided 

by the provisions of this Convention with respect to that item. 

Artidc2 

TAXES COVERED 

1. This Convention shalt apply to taxes on income imposed by a Contracting State 

irrespective of the manner in which they are levied. 

2. There shall be regarded as taxes on income: all taxes imposed on total income, or on 

elements of income, including taxes on gains from the alienation of property. 
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3. The existing taxes to which this Convention shall apply are: 

a) in the case of Poland: 

i) the personal income lax, and 

ii} the corporate income tax, 

(h~inafter referred to as "Polish tax"); 

b) in the case of the United States: 

i) the federal income taxes imposed by the Internal Revenue Code (but 

excluding social security and unemployment taxes), and 

ii) the taxes imposed with respect to private foundations under sectiOIllJ 

4940 through 4948 of the Intema1 Revenue Code, 

(hereinafter refened to as "United States tax"). 

4. This Convention shall apply 4\so to any identical or silbstantially similllr taxes that are 

imposed after the date of signature of the Convention in addition to, or in place of, the 

exming taxes. The competent authorities of the Contracting States shall notify each other of 

any significant changes that have been IIUIde in their llOOl1ion laws. 

Artide3 

GENERALDEF~ONS 

1. For the purposes of this Convention. unless the context otherwise requires: 

a} the term "person" includes an individual, an estate, a tmst, a partoership, a 

company, and any other body of persons; 

b) the term 'company' means any body corporate or any entity that is treated as a 

body corporate for tax purposes according to the laws oftbe state in which it is 

organized; 
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c} the terms "enterprise of a Contracting State" and "enterprise ortbe other 

Contracting State" mean respectively an enlelprise earried on by a re$ident of a 

Contntcting State, and an enterprise carried on by a resident of the other Contracting 

Stale; the terms also include an enterprise earried on by a te$ident of a Contracting 

State through an entity that is treated as fUcaily transparent in that Contracting State; 

d) the term "enterprisc~ applies to the carrying on of any business; 

e) the term "business" includes the performance of professional services and of 

other aetivities of an independent ehatad.er; 

f) the term "international traffic· means any transport by a ship or aircraft. except 

when such tnmsport is solely between places in a Contracting State; 

g} the term "competent authority" means; 

i) in tbc case of Poland, the Minister of Finance or his aUlhorized 

representative; and 

ii) in the case of the United States. tbe SecretarY of the Treasury or his 

delegate; 

h) the term "Poland" means the Republic of Poland, including tbe temtorial sea 

thereof and any area outside the territorial sea of the Republic of Poland designated 

under its taws and in aecon!ance with intemationallaw as an area within wbieh the 

sovereign rights of the Republic of Poland with respect to the sea bed and sub-soil and 

their natural resources may be exercised; 

i) the term 'United States" means the United States of America, and includes the 

states thereof and the District of Columbia; such tenn aJso includC3 the territorial sea 

thereof and the sea bed and subsoil of the submarine areas adjacent to that territorial 

sea, over which the United Stales may exercise sovereign rights in acrordance with 

intemalional law; the term, however. does not include Puerto Rico. the Virgin Islands. 

Guam or any other United States possession or territory; 

j) the term "national" ofa Contracting State means: 

i) any individual posscS3ing the nationality or citizenship of tbat Stale; 

and 
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ii) any legal person, parlnetShip or association deriving ils status as such 

from the laws in fon:e in that State; 

k) the lenn "pension fund" means any person established in a Contracting State 

that is: 

i) generally exempt from income taxation in that State; and 

ii) operated principally either: 

A) to administer or provide pension or rWn:ment benefits; 

or 

B) to earn income for the benefit of one or more persons 

described in clause A); 

I} the terms ''a Contracting State" and "the other Contracting StateD mean the 

United States or the Republic of Poland, as the context requires. 

2. As regaro. the application of this Conwntion at any time by a Contracting State, any 

term not defined therein shall, unless the contcxl o~ requires, have the meaning that it 

bas at that time under the laws of that State for the purposes of the taxes to which this 

Convention applies, any IllQI1ing under the appU<:able tax laws of thai State prevailing over a 

IllQI1ing given to the term under otbcr laws of that State. 

Artide4 

RESIDENT 

I. For the purposes of this Convention, the term "Rsidcnt of a Contracting State" means 

any person who, under the laws of that State, is liable to tax therein by reason of his domicile, 

~d=. citizenship. place of management, place ofiDCorporation, or any other criterion of a 

similar nature, and also includes that Contracting State and any political subdivision or local 

and governmental authority thereof. This term, however, does not include any person who is 

liable to tax in that State in respect only ofincorne from sources in that State or of profits 

attributable to 8 permaneot establislunent in that State. 
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2. The teon "tesident of a Contracting State" includes: 

a) a pension fimd established in that State; and 

b) an organization that is established and maintained in thai State exclusively for 

religious, charitable. scientific, artistic. cultural, or educational purposes, 

notwithstanding that all or part of its income or gains may be exempt from tax under the 

dome$lic law of that State. 

3. Where, by reason of the provisions ofparaJ!I'IIPh 1. an individual isa resident ofbolh 

Contracting States, then his $latus shaI1 be determined as foUows: 

a) he shall be deemed to be a resident only of the State in which he has a 

permanent home available 10 him; if be has a permanent home available 10 him in both 

States. he shall be deemed to be a resident only of the State with which his personal 

and economic relations are closer (center of vital interests); 

b) if the State in which he has IUs cenrerofvital interests cannot be determined, 

or if he does not have a pcrroanent bome available to him in either Slate. he shall be 

deemed to be a t1IS'ident only of the State in which he has an habitual abode; 

c) if he bas an habitual abode in both StaleS or in neither of them, he shall be 

deemed 10 be a resident only of the State of which he is a national; 

d) if he is a national of both States or of neither of them. the eompetent authorities 

of the ConIr8A::ting States shall endeavor 10 settle the question by mutual agreement 

4. Where by reason orthe provisions of paragraph I a company is a resident of both 

Contracting StaleS, then if it is created or organized under the laws of one of the Contracting 

States or a political subdivision thereof, but not WJder the laws of the other Contracting State 

or a political subdivisioo thereof, such company shail be deemed to be a resident only of the 

first-mentioned Contracting Stale. 

5. Where by reason of the provisions of paragraphs I, 2 or 4 a person other than an 

individual is a resident of both Contracting States, the competent authorities of the 

Cootracting States may by mutual agreement endeavor to determine the mode of application 

ofthis Convention to that person. 
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8 

ArticleS 

PERMANENT ESTABLISHMENT 

I. For the purposes ofthls Convention. the IemI "permanent establishment" means a 

fixed place of business through which the business of an enterprise is wholly or partly carried 

on. 

2. The tenn "pennanent establishment" includes especially: 

a) a place ofmanagemcnt; 

b) a braneh; 

c} an office; 

d) a factory; 

e) a worltshop; and 

f) a mine, an oil or gas well, a quarry, or any other place of extraction of natura.! 

teSOU!CCS. 

3. A building site, construction. assembly or installation project, or an installation or 

drilling rig or ship used for the exploration of natr.md ~ constitutes a permanent 

establisbment only if it lasts. or the explOIlltion activity continues for more than twelve: 

months. 

4. Notwithstanding the preceding provisions oflhis Article, the tenn "permanent 

establishment" shall be deemed not to include: 

a) the use of t8cllities solely for the purpose of stoIllS"> display Of delivery of 

goods or rtlC[Chandise belonging to the cntetprisc; 

b) the maintenance of a stock of goods or mm:handise belonging to the enterprise 

solely for the purpose of stOIllge, display or delivery; 

c) the maintenanCe of a stock of goods or merdtandise belonging to the enterprise 

solely for the purpose of processing by another enterprise; 
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d) 1he maintenance of a fIXed plac:e of business solely for 1he purpo$C of 

purchasing goods or merchandise, or of collecting information, for the enterprise; 

e) 1he maintenance of a fixed place of business solely for the purpose of carrying 

on, for 1he enterprise, any o1her activity of a preparatory or auxiliary char.u:ter; 

1) the maintenance of a lixed place of business solely for any combination of the 

activities mentioned in subpatagrapbs a} through e), provided 1hat the overall activity 

of the lixed place of business resulting from this combination is of a preparatory Ot 

auxiliary charncter. 

5. Notwithstmding the provisions of paragraphs I and 2. where a petsOll- other \han an 

agent of an independent status to whom pIIlllgnlph 6appiics - is acting on behalf of an 

entClllrise and bas and habitually exetciscs in a Contracting State an authority to conclude 

amtracls on behalf of the enterPrise, that entClllrise shall be deemed to have a permanent 

establishment in 1hat State in respect of any activities 1hat the person undertakes for the 

enterprise, unless the aotivities of such petsOll are limited to 1hose mentioned in paragraph 4 

that, if exercised through a: fixed place of buslOess, would not make this fIXed place of 

business a permanent establishment under the provisions of that paragraph. 

6. An eoteIprise shall not be deemed to have a permanent establishment in a Contracting 

State merely because it carries on business in that State through a broker, general commission 

agent, or any other agent of an independent status, provided that such persons an: acting in the 

ordinary course of their business. 

1. The filet that a oompany that is a resident of a Contracting State controls or Is 

controlled by a company that is a resident ofthc other COIIIraeting State, or that eames on 

business in that other State (whether Ulrough II. pcn:nanent establishment or otherwise). shan 

not be taken into aA:Count in determining whether either company has a permanent 

establislunent in that other Stale. 

Anide6 

INCOME FROM REAL PROPERTY 

1. lnoomederived by a resident of a Contracting State from real property including 

income from agriculture or forestry, situated in 1he other Contracting State may be taxed in 

that other State. 
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2. The term "real property" shall have the meaning which it has under the law of the 

Contracting State in which the property in question is situated. The rettn shall in any case 

include property accessory to real property (including livestock and equipment used in 

agriculture and forestry), righ1S 10 which the provisions of genemllaw respecting landed 

property apply, IlSUfi"u(;\ of real property and rights to variable or fixed payments as 

consideration for the working of, or the right to work, mineral deposits, sources and other 

natural resources. Ships and aircraft shall DOt be regatded as real property. 

3. The provisions of paragraph I shall apply to income derived ftom the direct use, 

letting, or usc in any other fonn of real property. 

4. The provisions of piuagraphs 'I and 3 shall also apply to the income fto~ real proPe,ty 

of an enterprise. 

Artiele? 

BUSINESS PROFITs 

1. Prolirs of an enterpriJe of a Conln£ting State shall be taxable only in that State unless 

the enterprise eames on businCss in the other Comractins State through a ~ 

establishment situllled therein. rfthe entel'plUe eames ,on business as aforesaid, the profit.! that 

are ettributable to the permmmt establishment ii:t acOO~e with the provisions of paragraph 

2 may be taxed in that other State. 

2. For the purposlis of this Artiele, the profits that are attributable in each ~ State 

to th~ ~ent establishmenl referred to in peragraph I are the profilS il might be ~ to 

make, in particula: in its dealings with other parts of the enterprise, if it wa'C a sepa.ntte and 

independent enterprise engaged in the same or similar activities under the same or similar 

conditions. taking into a.xount the functions perfoIml:<!, assets used and risks assumed by the 

enteqn:ise through the permanent establishment and through the other parts of the entetprise. 

3. Where, in accordance with paragraph 2, a Contracting State adjusts the profits that are 

attributable to a pennanent establishment of an enterprise of one of the Contraeting States and 

taxes accordingly profits of the enterpriJe that have been charged to tax in the other State, the 

other Contracting State shall, to the extent necessary to eliminate double taxation, make an 

appropriate adjustment if il agrees with the adjustment made by the first-mentioned State; if 

the other Contracting State does nOI so agree, the Contracting States shall eliminate any 

double taxation resulting lherefrom by mutual agreement. 
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4. ~ profits include ilerru1 of income which are dealt with separalely in other 

Articles of this Convention. then the provisions of those Articles shall not be alfeetcd by the 

provisions of this Article. 

S. In applying this Article, paragraph 6 of Article 10 (Dividends), paragraph 6 of Article 

I r (Interest), paragraph 4 of Article 13 (Royalties), paragrapb 4 of Article 14 (Capital Gains) 

and paragraph 2 of Aniele 21 (Other lneome), any income or gain attributable to a permanent 

escablishment during its existence is taxable in the Contracting State where such permanem 

cstablislunent is situated even if the payments are deferred until such permanent establishment 

has ceased to exist. 

Artlclc 8 

SHIPPING AND AIR TRANSPORT 

1. Profits of an enterprise of a Contracting Stale from the operation of ships or aircraft in 

international traffic shall be taxable only in that Stale. 

2. For pwposes of this Article, profits from the operation of ships or aircraft include, but 

are not limited to: 

a) profits from the rental of ships or aircmft on a full basis; 

b) profits from the rental on a bareboat basis of ships or aircraft if the rmtal 

income is incidental to protits from the operation of ships or aircraft in international 

traffi<:; and 

c) profits from the Rmtal on a ~boat basis of ships or aircraft if such ships or 

aiICraft are operated in inlemalional traffic by the lessee. 

Profits derived by an enterprise from the inland Itampol't of property or passengers within 

either Contracting Stale shall be treated as profits from tbe operation of ships or aircraft in 

international traffic if such transport is I.mder:taken as part of international traffic. 

3. Profits of an enterprise of a Contracting State from !be use, maintenance, or rental of 

containers (including trailers, barges, and related equipment for tbe transport of containers) 

shall be taxable: only in Ihat Contracting State,. where such usC', maintenance or rental, as the 

C83e may be, is incidental 10 the Opet1ltion of ships or aircraft in international traffic. 
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4. The provisions of paragraph J shall also apply to the proportionate share of profits 

ftom the participation in a pool, a joint business, or an international operating agency. 

I. Whete: 

Artkk' 

ASSOCIATED ENTERPRISES 

a) an enterprise of a Contracting Slate participates directly or indirectly in the 

management, control or capital ofm enterprise' of tile other Contracting State; or 

b) the $l\Ine persons participate directly or indi=tly in the management, control 

or capital of an enterprise of a Contracting Stale and an enterprise of the other 

Contracting State, 

lIIId in either case conditions ace made Of imposed between the two enterprises in their 

OOmlllCt'Cial or fll'l8l1Cial n:lations that differ from those that would be made between 

independent enterprises, then any profits that, but for those conditions, would have accrued to 

one of the enterprises, but by reason of those conditions have not so acctUed, may be included 

by II. Contracting State in the pfOfiu of that entctprise and taxed IWCOrdingly. 

2. When: a Contracting Sta1e includes in the profrts of an enterprise of that State. lind 

taxes accordingly, profits on which an enterprise of the Mher Contracting Slate has been 

charged to tax in that other State. and the other Contracting Slate agreeS that the pfOfits so 

included an: profits that would have accrued to the enterprise of the first-mentioned State if 

the coaditiOIlS made between. the two enterprises had been those that would have been made 

between independent enterprises. then that other State shall make an appropriate adjustment to 

the &mount of the tax clwged therein on those PfOfits. In determining such adjustment, due 

regard shall be had to the other provisions of this Convention and the competent authorities of 

the Contracting Slates shall if necessary consult each other. 

Artklel0 

DMDENDS 

1. Dividends paid by a company that is a resident of a Contracting Stale to a resident of 

the other Contracting State may be taxed in that other State. 
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2. However, such dividends may also be taxed in the Contracting State of which the 

company paying the dividends is a resident and according to the laws of that State. but if the 

beneficial owner. of the dividends is a resident of the other Contracting State, ew:pt as 

otherwise provided, the t~ SO charged shall not exceed; 

a) 5 pen:entofthe gross amount of the dividends if the beneficial owner is a 

company that owns directly at least 10 percent of the voting stoclc of the company 

paying the dividends; 

b) 15 percent of the gross amount of the dividends in all other cases. 

This paragraph shall not affi:ct the taxation of the company in RSpect of the profits out of 

which the dividends .an: paid. 

3. Notwithstanding the provisions of paragrap!l2. dividends shall nol be taxed in the 

Contracting State of which the company paying the dividends is a resident if: 

4. 

a) the beneficial 0_ of the dividends is a pension fund that is a resident of the 

other COJrtl:aCting State; and 

b) such dividends are not deriwd limn carrying on of a trade or business by the 

pension fund or through an associstecl enterprise. 

a) Subparagraph a) of pantgraph 2 shall not apply in the case of dividends paid by 

a U.S. Regulated In\'eSlment Company (RIC) or a U.S. Real Estate Investment Trust 

(RElT). In the case of dividends paid by a RIC, subparagraph b} of paragraph 2 sad 

paragraph 3 shall apply. In the case of dividends paid by a REIT. subparagraph b) of 

paragnq>h 2 II11d patagmph 3 shall apply only if: 

i} the beneficial 0_ of the dividends is an individual or pension fund, 

in either case holding an inteI1:st of not more than 10 percent in the REIT; 

ii) the dividends are paid with respect to a class of stock that is publicly 

traded and the beneficial owner of the dividends is a person holding an interest 

of not more than 5 pen:ent of any class of the RElT's stock; Of _ 

iii} the beneficial owner of the dividends is a perscn holding an interest of 

not meR than 10 percent in the REIT and the REIT is diversified. 
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b) For purposes of this paragraph, a REIT shall be "diversified" if the value of no 

single interest in real property exceeds 10 percent of its total interests in real property. 

For the purposes ofthls rule, foreclosure property shall not be ccnsidcred an interest in 

real property. Where a REJT holds an interest in a partnership, it shall be 1reated as 

owning directly a proportion of the partnership's interests in real property 

corresponding to its interest in the partnership. 

c) The rules of this paragraph shall also apply to dividends paid by companies 

resident in Poland that the competent authorities have detennined by mutual 

agreement arc similar to the United States companies referred to in litis parsgraph. 

5. For purposes of this Article. the term "dividends" means income from shares or other 

rights, not being debt-claims. participating in profits, as well as income from other corporate 

rights that is subjected to ,the same taxation treatment as income from shares under the laws of 

the State of which the payer is a l'C!Iident. 

6. The provisions of paragraphs 2 through 3 sball not apply if the beneficial owner of tbe 

dividends. being a resident of a Conb:acting State, canies on business in the other Contracting 

State. of wbic?-the company paying the dividends is a resident. through a permanent 

establishment sitoated therein. and the holding in respect of which the dividends are paid is 

effectively connected with such permanent establishment. In such case the provisions of 

Article 7 (Business Profits) shall apply. 

7. A Contracting State may not impose any laX on dividends paid by a resident of the 

other State, except insofar as the dividends are paid to a. tcsident of the first-mentioned SllIte 

or the dividends are atlribulahtc to a permanent establishment sitoated therein. nor may it 

impose laX on a corporation's undimibuted profits, ext'Cpl as provided in padgrapb 1 of 

Article 12 (Branch Profits). even ifthc dividends paid or the Wldistributcd profits consist 

wholly Ot partly of profits or income arising in that State. 

Artidc 11 

INTEREST 

I. Interest arising in a Contracting State and paid to a resident of the other Contracting 

Slate may be taxed in that other State. 

2. Ho_vcr. such interest may also be taxed in the Contracting Slate in v.hiclt it arises and 

according to the laws of that Slate, but if the benl!ficia! owner of the interest is a resident of 
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15 

the other Conlral:ting State, the laX so charged shal! not eXceed 5 percent of the gross amount 

of the interest. 

3. Notwithstanding the provisions of paragraph 2, interest described in paragraph 1 shall 

be llIXllble only in the Con!IllCting State in which the m:ipient is a resident if the beneficial 

owner of the interest is a resident of that State, 8Ild: 

a) is that Contnlcting Slate or the centta1 bank, a political subdivision, local 

authority or statutoty body thereof; 

b) the interest is paid by the Contracting State in which the interest arises or by 

the central banlc, a political subdivision, local authority or statUlory body thereof; 

c) the interest is paid in respect of a loan, debt..:laim or credit that is owed to, or 

made, provided, guaranteed or illSllI'Cd by, that Contracting State or a political 

subdivision, loeai authority. slJltUtory body or export financing agency thereof; 

d) is a pension fund, but only if the pension fund does not derive the interest from 

the carrying on of a business. ditecdy or indirectly; or 

c) is either: 

i) a bank; 

il) an insll!1lnce company; Of 

iii) an enterprise that is unrelated to the payer of the interest. and that 

substantially derives its gross income from the active and tcgular conduct of a 

lending or finance business (other than a bank within the m<eaning of clause i) 

of this subparagraph). For purposes of this subparagraph e) iii), the term 

"lending or finance business" includes the business of: 

A) making loans; 

B) purchasing Of discounting acoounts receivable. notes. or 

installment obligations; 

C) engaging in finance leasing (induding purchasing, servicing, 

and disposing of finance lea=< and related leased assets); 
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O} issuing letters of credit or providing gwuantees; or 

E) providing charge and credit catd services. 

4. Notwithstanding the provisions of paragraphs 2 and 3: 

a) interest paid by a resident of a Contracting State and that is detennined with 

reference to receipts, wes, income, profits or other cash flow of the debtor or a person 

related to the debtor, to any cllJmge in the value of any property of the debtor or a 

person related to the debtor or to any dividend, partnersbip distribution or similar 

payment made by the debtor or a person related to the debtor, and paid 10 a resident of 

the other Contracting State also roay be taxed in the Contracting State in which it 

arises, and accorxling to the laws of that State, but if the beneficial owner is 11 resident 

of the other Contracting State, the gross amount of the interest may be taxed at ; rate 

not exceeding 1 S percent; and 

b) a Contracting Slate may tax, in accordance with its domestic law, interest 

accrued with respeet to the ownership interests in an arrangement used for the 

securitization of real estate mortgages or other assets, to the el(tent that the amount of 

the interest acaued e~ the ICtum on eomparable debt instruments as specified by 

the domestic law of that State. 

S. The tenn "interest" as used in this Article means income from debt-elairns of every 

kind. whether or not secun:d by mortgage, and whether or not clllT,Ying a right to participate in 

the debtor's profits, and in particulat, income from government securities and income lmm 

bonds or debentures, in<;luding premiums or prizes attaching to such securities, bonds or 

debentures. WI well as all other iru:ome whic:b, under the laXation law of the COJJtraCting Slate 

in which the income arises, is assimilated to inoome from money lent. Income dealt with in 

Article 10 (Dividends) and penalty charges for late payment shall not be regmied as interest 

for the purposes of this Convention. 

6. The provisiol\!! of paragraphs 1, 2 and :3 $halt not apply if the beneficial owner of the 

interest, being a resident of a Contracting State. cames O\l bu$iness in the other Contrading 

State, in which the interest arises, through a permanent establishment situated therein. and the 

debt-elaim in n:speet of which the interest is paid is effectively connected with such 

pennanent establishment. In such ease the provisions of Article 7 (Business Profits) shall 

apply. 
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7. interest shall be deemed 10 arise in a Contracting State when the payer is a n:sident of 

that State:. Where; however, the: person paying the: interest, whether he is a resident of a 

Contracting State oc not, has in a Contracting State a permanent establishnlent in connection 

with whkh the indebtedness on which the interest is paid was inclUTed, and such interest is 

borne by such pennanent establishment. then such interest shall be deemed to arise in the 

State in which the permanent establishment is situated. 

8. WheN, by reason of a special relationship between the payer and the beneficial owner 

or between both of them and some other person, the amount of the interest, baving regard to 

the dcbt-claim for which it is paid, exceeds the amount which would have been agreed upon 

by the payer and the l:ic:neficial owner in the absence of such relationship. the provisiOM of 

this Article shall apply only to the last-mentioned amount. rn such case the excess part of the 

payments shall retnaln taxable according to the laws of each Contracting State, due regard 

berng had to the other provisions of tbis Convention. 

1. a) 

Article 11 

BRANCH PROFITS 

A company that is a resident of one of the Comracting Slates and thai bas a 

permanent establisluncnt in the other Contracting State or that is subject to tax in that 

other State on • net basis on its income that may be taxed in that other State under 

Article 6 (Income from Real Property) or under paragraph I of Article 14 (c.pital 

O1Iins) may be subject in that other State to a tax in addition 10 the tax. allowable W1der 

the other provisions of this Convention. 

b) Such tax, however, may be imposed: 

i} on only the portion of the business profits of the company attn"bulable 

to the permanent establishment and the portion of the income referred 10 in 

subparagraph a} thaI is subjcc; to tax unde. Article 6 or under paragraph 1 of 

Article 14 that, in the case of the United States, repn:sents the divideod 

equivalent amount of such profits or income and, in the case of Poland. is an 

amount that is analogous to the dividend equivalent amount; and 

ii) at a rate not in excess of the rate specified in paragraph 2 a) of Article 

10 (Dividends). 
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2. The excess, if any, of the amount of interest allocable to the profits of a company 

residerit in a Contracting State that are: 

a} attributable to a permanent establi.slunent in the: other Contracting Stale 

(including gains under paragraph 4 of Article 14); or 

b) subject to tax in the other Contracting State under Article 6 or paragraph 1 of 

Article 14, 

over the interest paid on indebtedness rc:lared to that permanent establishment, or in the case 

of profits subject to tax under Article 6 or paragraph I of Article 14, oYer the interest paid on 

indebtedness related to that trade or business in that State shall be: deemed to arise in that Stata 

and be: beneficially owned by a resident of the fir.;t-mentionecl State. The tax imposed under 

this Article on such interest shall not exceed the applieable rates provided in paragraph 2 of 

Article 11 (Interest). 

Artiele 13 

ROYALTIES 

1. Royalties arising in a Contracting State and paid to a resident of the other Contral:ting 

State may be taxed in that other State. 

2. Roweva', such royalties may also be taxed in the Contmcting State in which it arlse$ 

and according to the li.ws of that State., but if the beneficial owner of the royalties is a resident 

of the other Contracting State, the tax so charged shall not exceed 5 pet«I1t of the gross 

amount of the royalties. 

3. The term 'royalties" as used in this Article means: 

a) paymcnu of any kind received as a consideration fOl' the use of, or the right to 

use, any copyright oflitenu:y. artistic, scientific or other work (including 

cinematographic films or radio or television broadtasting tapes), any patent, 

trademark, design or model, plan. secret formula or process, or for information 

eonceming industrial, eommm:ial DC scientific experience; 

b) gain derived from the alienation of any property described in subparagraph a), 

to the extent that such gain is contingent On the productivity, use, or disposition of the 

property; and 
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c) payments of any kind received as a consideration for the IJ$e of, or the right to 

use any industrial, commercial. or scientific equipment. 

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the 

royalties. being a resident of a Contracting State, cames on business in the other ContIacting 

State through a permanent establishment situated thelein and the right or property in respe<:t 

of which the royalties are paid is effectively connected with such permanent establishment. In 

such case tne provisions of Article 7 (Business Pro6ts) shall apply. 

5. Royalties shall be deemed to arise in a Contracting State only to the extent that such 

royalties are payments nude as consideration for the use of, or the right to use, property or 

rights described in paragraph 3 within that Contracting State. 

6. Where, by reason of a special relationship between the payer and the beneficial owner 

or between both of them and some other person, the amount of the royalties, having reglUd to 

the usc, right, or infoIIll4tion for which they are paid, exceeds the amount which would have 

been agreed upon by the payer and the beoeficial owner in the absence of snch relationship, 

the provisions of this Article shall apply only to the last-mentioned amount. In such case, the 

excess part of the payments shall remain taxable according to the laws of each Contracting 

State, due regard being had to the other provisions of the Convention. 

Artide14 

CAPITAL GAINS 

1; Gains derived by a resident of a Contracting State from the alienation of real property 

referred to in Article 6 (Income from Real Property) situated in the other Contracting Stale 

may be taxed in that other State. 

2. Gains derived by a resident of Poland that are atuibulable to the alienation of a United 

StatllS real property interest may be taxed by the United States in accordance with its domestic 

law. 

3. Gains derived by a resident of the United States from the alienation of: 

a) shares. including rights to acquire sban:s, deriving more than 50 percent of 

their value directly or indirecdy from r~l property situated in Poland; and 
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b) an interest in a partnership or trust to the extent !hat the asset! of the 

partnership or trust consist in aggregate more than SO pen::enl of real property situated 

in Poland, or of shares referred to subparagraph a); 

may be taxed in Poland. 

4. Gains from the alienation of movable property fonning part of the bU$i.ness property of 

a pennanent establishment that an enterprise of a Contracting State has in the other 

Contracting State, including such gains from tbe alieaation of such a permanent establishment 

(alone or with the whole enterprise), may be taxed in tbat other State. 

5. Gains derived by 811 enterprise of a Contracting State from the alienation of ships or 

airc:raft opetllted in international InIffic Or movable property pertaining to the operation of 

such ships or aircraft shaH be taxable only in that State.. 

6. Gains derived by 811 enterprise of a Conttacting State from the alienation of containers 

(inc:hlding InIilers, barges, and related equipment for the transport of containers) used for the 

transpol't of goods or merchandise in international traffic shan be taxable only in that 

ConlI1lCting State.. 

7. Gains from the alienation of any property Otherthan property referred to in ~hs 

1.2,3,4, S and 6 of this Article shall be taxable ouIy in the Contrading State of which the 

alienator is a resident. 

Artiele 15 

INCOME FROM EMPLOYMENT 

1. Subject to the provisions of ArtWles 16 (Directors' Fees), 18 (Pensions, Social 

Security, Annuities, Alimony, and Child Support) and 19 (Government Serville), salaries, 

wages, and other similar remuneration derived by a resident of a ConlI1lCting State in respect 

of an employment shall be taxable only in that Stall! unless the employment is exercised in the 

other Contracting State. If the employment is so exercised,. such remuneration as is derived 

therefrom may be taxed in that other State. 

2. Notwithstanding the provisions ofpetagraph 1. remwu:ration derived by a resident of 

a Contracting State in respect of an employment exercised in the other Contracting State shall 

be taxable only in the first-mentioned State if: 
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21 

a) the =ipient is present in the other Slate for a period or periods nol exceeding 

in the aggregate 183 days in any twelve month period commencing or ending io Ute 

fiscal year concerned; 

b) the remuneration is paid by. or on behalf ot:. an employer who is not a resident 

of the other State; and 

c) the remuneration is not bome by a permanent establishment which the 

employer has in the other State. 

3. Notwiths1anding the preceding provisions of this Article. remuneration described in 

paragraph 1 that is derived by a resident of a Contracting State in respect of an employment 

exercised aboard a ship or aircraft opellllOO in international traffic as a member of the 

complement of the ship or aircraft shall be taxable only in that State. 

Artlele 16 

DIRECTORS' FEES 

. Directors' fees and other similar payments derived by a reSident of a Contracting State 

in his capacity as a member of the board of directon of a company that is. a =idcnl of the 

other ConlmCting State may be taxed in that other ConlmCtina State. 

Article 17 

ENTERTAINERS AND SPORTSMEN 

1. fncome derived by a resident of a Contracting Slate as an entertainer, such as a theater, 

motion picture, radio, or television arti$tc, or a musician, or as a spoltSIII8I1, from his pmIOIlal 

activities as such exercised in the other Conlracting State, which income would be exempt 

from tax io that other Contracting State under the prcMsions of Articles 7 (Business Profits) 

and 15 (Income from Employment) may be taxed in that other State, except where the amount 

oflhe gross receipts derived by such entertainer or spoltsman, including expenses rcimbuned 

to him or bome 00 his behalf. fiom such activities does not exceed twenty thousand United 

States dollars ($20,000) or its equivalent in Polish Iegal tender for the taxable year of the 

payment. 
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2. Where income in n:speet of ~nal activities exercised by an entettalner or a 

sportsman in his capacity as ,uch accrues not to the entertainer or sportsman himselfbut to 

another pct'SOII, that income may. notwithstanding the provisions of Articles 7 and IS of this 

Convention, be taxed in the Contmcting Slate in which the activities of the entcrlainer or 

slXlrtsman arc exetcised unless the comw:t pursuant to which the pmonal activities arc 

pelfunned allows tbat other person to designate the individual who is to perl'orm the pet:sonal 

activities. 

Article IS 

PENSIONS. SOCIAL SECURITY, ANNUITIES. 

ALIMONY, AND CHILD SUPPORT 

1. Pensions, annuities and other similar payments made to 8lId beneficially owned by a 

resident of a Conlnleting State sball be taxable only in thaI State. 

2. Notwithstanding the provisions of pmtgrapb I, pensions and other 5i. payments 

, arising in a Contracting State that, when received, would be exempt from taxation in that State 

if the bene6eial owner welt' a resident thereof shall be exempt from taxation in the 

Cootraeting State of which the beneficia! owner is a resident. 

3. Notwithstanding the provisions ofparagmph I, payments made by. Cont!aeting State 

under the provisions of the social security or similar legislation of that State to a resident of 

the other Con\l3Cting State or 10 a citizen of the United States may be taxable only in thc first· 

mentioned Stste. 

4. Where an individual who is a resldent of one of the Contraeting States is a member or 

beneficiary of, or participant in, a pension fund that is a resident of the other ContlllCtitli 

State, income earned by the pension tlmd may be taxed as income of that individual only 

when. and. subject to the provisions of paragraph 1, to the extent that, it is paid to, or fur the 

benefit of, that individual from the penslon fund (and not In\IlSfcrred to another pension f\md 

in that other Contl3Cting State). 

S. Alimony paid by a resident ora CODlnlcting State ttl a resident of the other 

Contracting State and periodic payments for tha support of a child made pursuant to a written 

separation agreement or a ~ of divorce, separate maintenance, or compulsory support, 
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paid by a resident of a Contracting Stale to a resident of the other Contr&ting State. sball be 

exempt from tax in both Contracting States. The temt "alimony' as used in this pamgraph 

means periodic payments made pursuant to a written sepan!tion agreement or a decree of 

divorce, separate maintenance. or compulsory support, which paymmts are taxable to the 

recipient under the laws of the State of which he is a resident. 

1. 

2. 

a} 

Am~1c 19 

GOVERNMENT SERVICE 

Salme!!, wages and other similar remunem.ion, paid by a Contracting State or 

a politiC1ll subdivision or a local and governmental ~uthority thereof to an individual in 

respect of services rendered to that State or subdivision or authority sball be taxable 

only in that State. subject to subparagraph b) oflhis paragraph. 

b) However, such salaries, wages and other similar remuneration shall be taxable 

only in the other Contracting State if the scrviccs are rcnden:d in that State and the 

individual is a resident of that State who: 

i) is a national of that State; or 

Ii} did not become a resident of that State solely for the purpose of 

rendering the saviccs. 

a) Notwithstanding the provisions of paragmpb I of Article 18 (Pensions, Social 

Security, Annuities, Alimony. and Child Support}, any pensions. annuities and other 

. similar payments pald by. or ollt of funds crated by, a ConIlaCtiilg State Of a political 

subdivision or a local and governmental authority thereof (other than a payment to 

which parngraph 2 of Article 18 applies) to an individual in respect of services 

rendered to that State or subdivision or authority shall be taxable only in that State. 

b) However, such pensions, annuities and other similar payments sbaIl be taxable 

only in the other Contracting State if the individual is a resident of, and a national of 

that State. 

3. The proruionsof Articles 1 S (Income from Employment), 16 (Director's Fees). 17 

(Entertainers and Sportsmen) and 18 (Pensions, Social Security. Annuities. Alimony. and 

Child Support) of this Convention shall apply to salaries, wages. pensions and other similar 
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24 

remuneration in respect of senices rendered in connection with a business carried on by a 

COIlI1'3Cting State or a political subdivision or a 10C4I and govemmenwauthority thereof. 

AmefelO 

STUDENTS AND TRAINEES 

I. Payments, other than remuneration for personal services.. received by a student, pupil 

or business trainee who is, or was immediately before visiting a Contracting State, a resident 

of the other Contracting State, and who is present in the ill'St-mentioned State for the primary 

purpose of his edUClllion or training, shall not be iaxed in that State. provided tlurt such 

payments arise outside tlurt State and are for the purpose: of his maintenance, education or 

training. The exemption from tax provided by this pamgraph shall apply to a business trainee 

only for a period of time not exceeding one year from the date the business trainee fll'St arrives 

in the first-mentioned Contr.lCtlng State for the purpose of training. 

2. A student, pupil or business trainee within the meaning of paragraph 1 shall be exempt 

from tax by the Contracting State in which the individual is temporarily Pr<:SCllt with respc:!(!t 

to income from persoll8l. senices in an aggregate amount equal to $9,000 or its equivalent in 

Polish legal tender annually. 

3. For purposes of thls Article, a business trainee ill an individual; 

a) who is temporarily in a Contracting State for the purpose of securing training 

requimi to qualify the individual to practi<:c a profession or professional specialty; or 

b) who is temporarily in a Contracting State as an employee of, or undercontrad: 

with. a resident of the O!her Contracting State, for the primary pwpose of acquiring 

technical. professional. or business experience from a person O!her than that resident 

of the other Contracting State (or a person related to such resident of the other 

Contracting State). 
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25 

Artide21 

OTHER INCOME 

I. Items of income received by a resident of a Contracting State that are benefICially 

owned by a resident of that State, wherever arixing, not dealt with in the foregoing Articles of 

this Convention shall be taxable only in that State. 

2. The provisions of paragraph 1 shall not apply to inc:ome, other than income from real 

property as defined in paragraph 2 of Article 6 (Income from Real Property), if the recipient 

of such income, being a resident of a Contracting State, carries on business in the other 

Contracting State through a permanent establishment situated therein and the right or propeny 

in respect of which the income is paid is effectively connected with such pemlaIlent 

establishment. in such case the provisions of Article 7 (Business Profits) shall apply. 

Article 22 

UMITATION ON BENEFTfS 

1. Except as otherwise provided in this Article, a resident of a Contracting Stale shall not 

be entitled to the benefits of this COnvenUOll otherwise accorded to n:sidents of a Con1nlcting 

State unless such resident is a "qualified person" as defined in panigrapb 2. 

2. A resident of a Contracting State shall be a qualified person for a taxable year if the 

resident is: 

a} an individual; 

b) a Contl'8cting State, or a political subdivision or local authority thereof; or an 

agency or illStnlmerltality of that Slate, subdivision or authority; 

c) a company, if; 

i) the principal ,,11m of its shares (and any disproportionate class of 

shaRs) is regularly traded on one or more recognized stock exchanges, and 

either: 

A) its principal class of shares is primarily traded on one Of more 

recogcized stnc:k exchanges located in the Contracting State of which 

the company is a resident (or. in the case of a company resident in 
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26 

Poland, on a recognized stock exchange 1oC8led within the European 

Union or in any other European Free Trade Association (EFTA) state 

or. in the case of a company resident in the United States, on a 

recognized stock exchange located in another state that is a party to the 

North American Free Trade Agreement (NAFT A»; or 

B) the company's primary place of management and control is in 

the Contracting State of which it is a resident; or 

ii) at least 50 percent of the aggregate voting power and value of the 

shares (and at least SO percent of any disproportionate class of slwes) in the 

company is owned directly or indirc<:tly by five or fewer companies entitled to 

benefits under clause i) of this subparagraph. provided that, in the case of 

indirect ownership, each intermediate owner is a resident of either Contracting 

St&tc; 

d) a pemon described in paragraph 2 of Article 4 (Resident). provided thaI, in the 

case of a person deScribed in subparagraph a} of that paragraph, more than SO percent 

of the person's beneficiaries, members or panicipants are individuals resident in either 

Contracting State; or 

c) a person other than an individual. if: 

i} on at least IWfthedaya of the taxable year. persons who arc rcsidenta 

of that Contnwting State and thIlt are entitled to the benefits of this Convention 

under subpatagraph a), subparagraph b). clause i) of subparagnrph e). or 

subparagraph d) of this paragraph own, diMct1y Ot indirectly. shares or othet 

beneficial iirtetests representing at least SO pcteent of the aggregate votin& 

power and value (and at least SO percent of any disproportionale class of 

shares) of the person, provided that, in Ihe case of indlJeet oWllCl.'ShiP. each 

inlemlediatc owner is a resident of that C~ State, and 

ii) less than 50 pe=t of the person's gross income for the taxable year, 

as determined in the person's State of residence, is paid or accrued, directly or 

indirectJy, to persons who are not residents of either Contracting State entitled 

to the benefits of this Convention under subparagraph a). subparagraph b). 

clause i) of subparagraph c), or subparagraph d} of this ~ph in the form 

of payments that are deductible for purposes of the taxes covered hy this 

Convention in the person's State ofrcsidcnce (but not including arm's length 
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27 

payments in the ordinary course of business for setvices or tangible property). 

3. Notwithstanding that a company that is Ii resident of a Contracting State may not be a 

qualified person, it shall be entitled to all the benefits of this Convention otherwise accorded 

to residents of a Contracting State with respect to an item of income if it satisfies any other 

specified conditions for the obtaining of such benefits and: 

4. 

a) at least 9S pen:entofthe aggregate voting power and value of its shares (and at 

least SO percent of any disproportionate class of shares) is owned, drnxtly or 

indirectly. by seven or fewer persons who an: equivalent beneficiaries; and . 

b) less than SO percent of the company's gross income. as determined in the 

company's State of residence, for the taxable year is paid or accrued, directly or 

indirectly, 10 persons who IUC not equivalent beneficiaries, in the fonn of payments 

that are deductible for purposes of the taxes covered by this Convention in the 

company's State of residence (but not including ann's length payments in the ordinary 

COUlSe of business for services or tangible property). 

a) A resident of a Contracting State will be entitled to benefits of the Convention 

with respect to an item of income derived from the other Contracting State, regardless 

of whether the re$ident is a qualified person, if the resident is engaged in the active '1' .... , .• , . 

conduct ot a trade or business in the first-mentioned State (other than the business of 

making or managing investments for the resident's own account, unless these 

activities are banking. i11SUI3l\CC or securities activities carried OIl by a ballk, illSUl'lUlCc 

company or registered securities dealer), and the income derived from the other 

Contracting State is derived in connection with. Or is incidental. to, that trade or 

business. 

b) If a resident of a COntnl<;ting State derives an item of income from a trade or 

business activily conducted by that resident in the other Contracting State, or derives 

an item of income arising in the other Contracting State from a related person, the 

conditions described in subparagraph a) shall be considered to be satisfied with respect 

to such item only if the trade or business activily carried on by the resident in the firstmentioned Contracting State is substantial in relation to the trade or business activity 

carried on by the resident or related person in the other Contracting State. Whether a 

l!lIde or business activity is substantial for the PllfPoses of this paragraph win be 

determined based on all the facts and circumstances. 
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28 

c) For pwposes of applying this paragraph, activities conducted by persons 

connected to a person shall be deemed 10 be conducted by such person. A person shall 

be connected to another if one possesses at {esst 50 pen:ent of the beneficial interest in 

the other (Of, in the case of a company, at least SO pc!:cent of the aggregate vcting 

power and value of the company's shares or of the benefiCial equity interest in Ihe 

company) or anotbet penon possesses at least SO pcteentofthe beneficial intetellt (or, 

in the case of a company. at least 50 pereent of Ihe aggregate voting power and value 

of the company's shares or of the beneficial equity interest in the company) in each 

person. In any case, a person shall be considered to be connected 10 another if; based 

on all the relevant faas and cm:umstances, one bas control of the other or both are 

under the control of 1he same person or persons. 

5. A person 1hat is a resident of a Contracting State shall also be entitled 10 aU the 

benefits of1his Convention otherwise accorded to residents ofa State iftbat person filnctions 

as a headquarters company for a multinational corporate group and that resident satisfies any 

specified conditions "for 1he obtaining of such benefits other than those of this Article. A 

person sball be considered a headquarters company for this purpose only if: 

a) it provides a substantial portion of the overall supervision 8lId administxation 

of the group, which may include, but cannot be principally. group fln3l1Cing; 

b) the corporate group consist5 of corporations resident in. and engaged in an 

active business in, at least five coun1ries, and the business aetivities carried on in each 

of the five couotrles (or five groupin~ of countries) generate at least 10 pereent ofthe 

gross income of the group; 

c) the business activities carried on in anyone country oth .... than the Contracting 

State of residence of the hcadqusrters company generate less than SO percent of the 

gross income of the group; 

d) no more than 25 percent of its gross income is derived from the other 

Contracting State; 

e) it bu, and exercises, independent diseretioMIY authority to carry out the 

functions referred to in subparalll'aph a); 
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f) it is subject to the same income taxation mJes in its COtmll')' of residence as 

persons described in paragraph 4; and 

g) the income derived in the other Contracting State either is derived in 

connection with, or is incidental to, the active business referred to in subparagnlpb b}. 

If the gross income tequirements of subparagraphs b}.o), Qr d) ohhls paragraph are not 

fulfiUed, they will be deemed to be fulfilled if the tequired ratios are met when a~g the 

gross income of the preceding four years. 

6. Notwithstanding the preceding provisions of this Article, where an enterprise of & 

Contra<:ling State derives income from the other Cont=ting Stale. and thaI income is 

attributable to a permanent establishment which that enterprise has in a third state. the tax 

benefits that WIluId otherwise apply under the other provisions of the Convention will not 

apply 10 that income if the profits of that permanent establishment are subject 10 a combined 

aggregate effective rate of tax in the ftrSl·mentioned Contracting State and third state that is 

less than 60 percent of the general rate of company tax applicable in the fitst-mentioned 

Cont=ting State. Any dividends, interest or royalties to which the provisions of this 

paragraph apply shall be subject to tax in the other Contra<;ting Slate at a rate that shall not 

cxcced t S percent of the gross amount thereof. Any other income to which the provisions of' 

this paragraph apply shall be subjcct to tax Wlder the provisions of the domestic law of the 

other Conlral1tin& State. notwiths1anding any other provision of the Convention. The 

provisions of this paragraph shall not apply if: 

a) in the case of royalties, the royalties arc rccelved as compensation for the use 

of, Of the right to use, intangt'ble property produced or developed by thepetmanent 

establishment itself; Of 

b) in the case of any other income. the income derived from the other Contracting 

State is derived in connection with, or is incidental to, the active conduct of a ttade or 

busines$ carried on by the pennanent establishment in the third state (otbcr than the 

business of making, managing or simply bolding investments for the enterprise's own 

account, Wl1ess these activities are securities activities carried on by a registered 

SCC\lrities dealer). 

7. If a resident of II Cont=ting State is neither II qualified person pursuant to Ihe 

provisions of paragraph 2 nor entitled to benefits With respect to an item of income under 

paragraph 3 of this Article the competent authority of the other Contracting State may, 
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30 

nevertheless, grant the benefits of this Convention. or benefits with respect to a specific: item 

of income, if it determines that the establishment, acquisition or maintemnce of such person 

and the c:ondu<:t ofits operaUoos did not have lIS OM orits prinl:ipal purposes the obtaining of 

benefits under this Convention. The compcteo1 authority of the Slate in which the income 

arises will consult with the competent authority of the other Slate before denying the benefits 

of the Convention under this paragraph. 

8. For pmposes of tbis Anicle: 

a) the term "recognized s10Ck exchange" means: 

i) the NASDAQ System owned by the Nationai Association ofSeeurities 

Dealers, Ioe. and any stock exchange regiSlCrcd with the U.S. Seeurities and 

Exchange Commission as a nationai seew:ities exchange under the U.S. Securities Exchange Act of 1934; 

ii) the Warsaw Stock Exchange; 

iii) the stOCk: exchanges of Amstctdam, Brussels, Budapest, FranIdUrt, 

London, Mexico City. Montn:aI, Paris, Toronto. Vienna and Zurich; 

iv) any other stock exchange agreed upon by the competent authorities; 

b) the term "principal class of shares" means the ordioaty or common shares of 

the COIIlpany. provided that such class of sharcs represents the majority of the voting 

power and value of the company. If no single class of ordinary or common shares 

n:prcscnts the mAjority of the aggrepte voting power and value of the company, the 

"principal class of shares" are those classes that in the aggregate "'Present a majority 

of tile aggregate voting power and value of the company; 

c) the term "disproportionate class of sba.n:s" means any class of sheres of a 

COIIlpa!lY resident In one of the ConlXllcting States that entitles the shareholckr to 

disproportionately higher participation, through dividends, redemption payments or 

OthcrwillC. in the earnings generated in the other State by particular assets or activities 

of the company; 

d) the shares of a company are "primarily traded" if the number of shares in the 

company's principal class of slla= that arc traded during the taxable yea.r on all 

recognized stock exchanges in the ConlXllcting State of which the company is a 
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31 

resident (or, in the case of a company resident in Poland, on a recognized stock 

el\chanie located within the European Union or in any other European Free Trade 

Association (EFTA) state or, in the case of a company re,ident in the United States. on 

II. recognized stock exchange located in another state that is a party to the North 

American Ftet! Trade Agreement (NAFTA» exceeds the number of share$ in the 

company's principal class of shares that are traded during that year nn established 

securities markets in any other single foreign country; 

e) II. company's "primary place of management and control" will be in the 

Contrallting Stale of which it is a resident only if executive officers and senior 

management employees exercise day-to-day respopsibility for more of the !ltrl!tegic, 

finlUlCial and operational policy decision making fur the company (including its direct 

and indirect subsidiaries) in that State than in any other state and the staff of such 

persons conduct more of the day-to.day activities necessary for preparing and making 

those dceisions in that State than in any other state; 

f) the term "equivalent beneficiary" means a resident of II. member state of the 

European Union or of any other European Free Trade Association (EFTA) state or of 8 

party to the North American Free Trade Agreement (NAFTA), but only if that 

residerU: 

i) A) would be entitled to all the benefits of II. comprehensive 

convention for the avoidance of double taxation bet~ any member 

state of the European Union Of any other European Free Ttade 

Association (EFTA) state or any petty to the North American Free 

Trade Agreement (NAFTA) and the State from which the benefits of 

this Convention are claimed II1lI.ler provisions analogous 10 

subpanigraph a), b), clause i) of subparagraph c) or subparagraph d) of 

paragraph 2 of this Article. provided that ifsuch convention does not 

contain a comprehensive limitation on benefits dele, the person WIluid 

be cntitIed to the benefits ofthls Convention by reason of su~ 

a}, b). clansc i} of subparagraph c) or subparagraph d) of parapph 2 of 

this Article if such person were a resident of one of the StateS under 

Article 4 of this Convention; and 
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32 

B) with rellpect to income referred to in Article 10 (Dividends). 1 t 

(Interest) or 13 (Royalties) of this Convention, would be entitled under 

such convention to a nite of tax with n:spect to the particular class of 

ineome for which benefits are being claimed under this Convention !hat 

is at least as low as the rate applica\)ie under this Convention; or 

ii) is 8 resident of a Contracting State that is entitled to the benefits or this 

Convention by reason of subparagraph a), b). clause i) of subparagtaph c) or 

subparagraph d) of paragraph 2 of this Aiticle; and 

g) with respect to dividends, interest or royalties arising in Poland and 

beneficiaRy owned by a company that is a resident of the United States, 8 company 

that is a resident of II member state of the European Union win be treated as satisfYing 

the requirements of subparagraph f) i) B) of this paragraph for purposes of determining 

whether such United States resident is <mtitled to benefits under paragraph 3 if a 

payment of dividends, interest or royalties arising in Poland and paid direc:tly to such 

resident of a member state of the European Union would have been exempt from tax 

PUl'$UlUtt to any directive of the European Union. notwithstanding that the income tax 

convention be~ Pohmd and that other member state of the European Union would 

provide for a higber rate of tax with respect to such payment than the rate of tax 

applicable to such United States company UIlder Article 10. 11 or 13 of this 

Convention.. 

Artide23 

ELIMINATION OF DOUBLE TAXATION 

1. In the cue ofPola:nd, dO\1ble taxation shall be avoided as fonows: 

a) Where .. resident of Poland dcrilleS ineome which, in accordance with the 

provisions of this Convention may be taxed in the United States, Poland shall, ~ 

to the provisions of subparagraph b) of this paragraph e:>tempt such income: from tax. 

b) Where a resident of Poland derives income ot capital gains whic:b, in 

accordance with the provisions of Articles 10 (Dividends), 11 (Inten:st), 13 

(Royalties), 14 (Capital Gains) or 21 (Other Income) may be taxed in the United 

States, Poland shall allow as a deduction from the tax on the income or capital gains 

of that resident an amount equal to the tax paid in the United States. Such deduction 

shall not. however, exceed that pan of the tax, as computed before the deduction is 
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33 

given, which is attributable 10 such income or capital gail!!! derived from the United 

States. 

c) Wh_ in accordance with any provision of this Convention. income derived 

by II resident of Poland is exempt funn tax in Poland. Poland may nevertheless, in 

calculating the amOUlIt of tax on the remaining income of sU(;b resident, take into 

account the exempted income. 

2. In accordance with the: provisiQI!!! and subject to the limitations of the law of the 

United States (as it may be amended funn time 10. time without changing the general principle 

herea!), the United States shall allow 10 a resident or citizen of the United States as a credit 

against the United States tax on ineome applicable to residents and citizens: 

a) the income tax paid or aeCl'lled to Poland by or on behalf of such resident or 

citizen; and 

b) in the case of a United States company owning at least 10 percent of the voting 

stock of a company that is a residant ofPQ11Ild and from which the United States 

company reeeives dividends, tile income tax paid or accrued to Poland by or on behalf 

of the payer with respect 10 the profits out of which the dividends are paid. 

For !be purposes of this paragraph, !be taxes reimed 10 in pazagraphs 3 a) and 4 of Article 2 

(Taxes Covered) shaI1 be considered income taxes. 

3. For the pwpo_ of applying p8l'lIgI'IIpb 2 oftbis Article, an item of gross mcome, as 

determined under the laws ofthc United States, deriv.:d by a resident of the United States that. 

UDder this Convention, may be taxed in Poland sball be deemed to he income from sources in 

Poland. 

4. Where a United States citizen is a resident of Poland: 

a) with respect to items of income that under the provisions of this Convention 

are exempt from United States tax or that are su~ect to a reduced rate of United States 

tax when derived by a resident of Poland who is not a United States citizen, Poland 

shall allow as a credit against Polish tax, only the tax paid, if IlIIY. that the United 

States lItIly impose under the provisions of this Convention, other than taxes that may 

be imposed solely by reason of citizellShip under paragraph.4 of Article 1 (General 

Scope); 
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b) for pwpose$ of applying paragraph 2 to compute United States tax on those 

itcrru< of income referred to in subparagraph a). the United SlateS shall allow as a 

credit against United States tax the income tax paid to Poland a&r the credit rekrred 

to in subparagrapb a); the credit so allowed shall not reduce the portion of the United 

States tax that is creditable against the Polish tax in accordance with subparagmph a); 

and 

c) fur the exclusive PUIpOSC of relieving double taxation in the United States 

under subpsmgraph b), items of i.n<xlmc ",femd to in subparagnph a) sball be deemed 

to arise in Poland to the extent necessary to avoid double taxation of such income 

under subparagraph b). 

5. Where an individual. upon ceasing to be a resident of one of the Contracting States, is 

treated under the taxation law of that State as having alienated any property for its fair marKet 

value and i.s taxed in that State by reason thereof, the individual may elect to be treated for 

purposes of taxation in the other Contracting State as if the individual had, immediately 

before ceasing to be a resident of the rust-mentioned State, alienated and fClICqUired such 

property for an amount equal to its fair DIlII'kct value at such time. 

Article 24 

NON·DISCRIMINATION 

1. Nationals of a Contracting State shall not be subjected in the other Contracting State 10 

any taxltion or any requirement eonncctcd therewith that is other or more burdensome than 

the taxation and connected requirements to which aationals of that other State in the sante 

cin:umstances. in particular with respcc;t to taxation on worldwide income. are or may be 

subjected. This provision shall also apply to persons who are not residents of one or both of 

the Contracting States. 

2. . The taxation on a permanent establishment that an enterprise of a Comracti.!lg State 

has in the other Contracting State shall not be less favombly levied in that other State than the 

taxation levied OD enterprises of that other State carrying on the same activities. 

3. The provisions of paragraphs 1 and 2 shall nOI be consuucd fl$ obliging a Contracting 

State 10 grant to residents of the other Contracting State any personal allowances. reliefs, and 

reductions for laxation purposes on account of civil StatUS or family responsibilities that it 

grants to its own =idenlS. 
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35 

4. Except where the provisions of paragraph I of Article 9 (Associated Enterprises). 

paragraph 8 of Article 11 (Interest), or paragraph 6 of Article 13 (Royaltia) apply, interest, 

royalties, and other disbursements paid by a _;dent of a Contnlc:ting State to a resident of the 

other Contracting State shan, for the purpose of ~termining the taXable profits of the Ilr3tmentioned resident. be deductible under the same conditions as irthey had been paid 10 a 

resident of the fU'St-menlioned State. Similarly. any debts of a resident of II Contracting Stale 

to a resident of the other Contmct:i::18 State shall, for the purpose of determining the taxable 

capital of the first-mentioned resident. be deducllo!e under the same conditions as if they had 

been contracted to II resident of the tim·mentioned State. 

5. Enterprises of a Contracting State. the capital of which;' wholly or partly owned or 

controlled, directly or indirectly, by one or more nmdents of the other Contractirtg State, shall 

not be subjected in the first-mentioned Stata to any taXation or any requirement connected 

therewith that is more burdensome than the taXation and connected requimnents to which 

other similar enterprises of the first-mentioned State are or may be subjected. 

6. Nothing in this Artiele shall be construed as preventing either Contracting State from 

imposing a tax as dcscnbed in paragraph I of Article 12 (Branch profits). 

7. The provisions of this Artide $ball, notwithstanding the provisions of Artick, 2 (Taxes 

Covered), apply to taxes of CVCQ' kind and description imposed by a Contracting State or a 

political subdivision or Ioc:al authority thcreo£ 

Artlde2S 

MUTUAL AGREEMENT PROCEDURE 

1. Where a person considers that the acti.Ol1$ of one or both of the Contracting slates 

result or will result for such penon in taxation not in accordance with the provisions of this 

Convention, it may, i=speotiveof thc remedies provided by the domestic law of those States. 

and the time limits pteSCrlbed in such laws fOr presenting claims tOr refund, present its ease to 

the competent authority of the Contracting State ofwhicb. he is a resident or, if his case 

comes under paragraph 1 of Article 24. to that of the Contracting State of which he is a 

national. The case must be presented within three years from the first notification of the aotion 

resulting in taxation not in accordance with the provisions of this Convention. 

2. The competent authority shall endeavor. if the objection appears to it to be justified 

and ifit is nOI itself able to arrive at a salisfactory solution, to l'¢SOive the case by muttlal 

agreement with the competent authority of tbe other Contracting Stsle. with a view to the 
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36 

avoidance of taxation which is not in accordance with the Convention. Any agreement 

reaclu:d sball be implemented notwithslanding any time limits or other procedut'allimitations 

in the domestic law of the Contracting States. 

3. The competent authorities of the Contracting States shall endeavor to n:solve by 

mutual agreement any difficulties or doubts arising lIS to the interpretation or application of 

the Convention. They also may consult together for the elimination of double taxation in 

cases not provided for in the Convention. 

4. The competent authorities of the Contracting States may communicate with each other 

directly, including through ajoint commission consisting of themselves or their 

representatives, for the purpose of reaching an agreement in the sense of the preceding 

paragrapbs. 

Artlde16 

EXCHANGE OF INFORMATION 

1. The competentauthorities of the Contracting States shall exchange such information 

as is foresecably relevant foc carrying out the provisi.oas of this Convention or to the 

adm.inistration or enforccroent of the domcsUc laws of the Contracting Statft co~ taxes 

of every kind and description imposed by 8. Contracting State, insofar lIS the taltation 

thereunder is not contrary to the Con"lll:Zltion,. including iDformation relalina to the assessment 

or collection of, the enforcement or prosecutioo in respect of, or the dcterminatioo of appeals 

in relation to, such taxes. The ex:ehaDge of information is not restricted by pantgraph 1 of 

Article 1 (General Scope) or Article 2 (Taxes Covered). 

2. Any informatioo received under this Article by a. Contracting State shall be IIUted as 

secret in the same manner as informauoo obtaim:d under the domestic laws of thaI State and 

shall be disclosed only to persons or authorities (sncluding eourts and administrative bodies) 

involved with the assessment, or coUecnoo of, or administration of, the enforcement or 

prosecution in respect of, or the determination of appeals in relation to, the taKes refereed to in 

paragraph I, or the oversight of such fwu:tions. Such persons or authorities shall use the 

infonnation only fur sueh purposes. They may disclose the information in public court 

proceedings or in judicial decisions. 

3. In no case shall the provisions of the preceding paragraphs be construed so as to 

impose on a Contracting Sate the obligation: 
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37 

a) to carry out administrative measures at variance with the laws and 

administralive practice of !hat or of the oilier Contracting Slate; 

b) to supply information that is not obtainable under the laws or in the nonna! 

eoune of the administration of lhat or of the other Contracting State; 

e) to supply infunnation 1hat would disclose any trade, business, industrial, 

conunen:ial, or professional secret or trade process. or information the disclosure of 

which would be contrary to public policy (ordre public). 

4. If information is requested by a Conttucting State in accordance with this Ar\k11e, the 

other Conttucting State shall use its information gathering measures te) obtain 1he requested 

information, even though 1hat other State may not need such information fur its own purposes. 

The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 

but in no cue shall such limitation be consuued to permit a Contl'8l:ting State to decline to 

supply information beeallse it has no domestic interest in such information. 

5. In no ease shall the provisions of paragtaph 3 be construed to permit Il Contracting 

Slate to decline to supply information requested by the other Contracting State because the 

infonnation is held by a bank, 01het financial institutioo, nominee or person actina in an 

agency or a fiduciary capacity or because it relates to ownership in!etats in II pcmroll. 

6. . If spccific:a1ly requested by the competent authority of a Contracting State, the 

competent authority of the other Contracting State sba1l provide information under this Article 

in the form of depositiOllll of witnesses and authenticated copies of unedited original 

documents (mcluding books, papers. statcmenls, records, accounts, and writings). 

7. The oompelent authorities of the Contracting States may develop an ~ upon 

the mode of application of this Article, including agreement to ensure comparable levels of 

assistance to each of 1he Contracting States, but in no ease will the lack of such agreement 

relieve a Contracting Stare of its obligations under this Article. 

Article 17 

MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS 

Nothing in this Convention shall affeet the ftscal privileges of members of diplomatic 

missions, permanent representations or oonsulac posts under the general. rules Qf intemali_l 

law or under the provisions of special agreements. 
38 


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38 

ArticlelS 

ENTRY INTO FORCE 

L This Convention sball be subject to ratification in accordanoc wi1h the awlical!le 

procedlJl'eS of each Contracting State. The Contracting States shall notify each o1her in 

writing. through diplomatic channels, that their respective applicable procedures have been 

satisfied. 

2. This Convention shall enter into force on 1he date of the later of the notifications 

referred to in paragraph !, and its provisions shall have effecc 

a) in =pcct of taxes withheld at soU[Ce, for amounts paid or credited on or after 

the first day of the second mon1h next following the date on which the Convention 

enters into force; and 

b} in respect of otber taxes, for taxable periods beginning on or after the first day 

of January next following the date on which the Convention enters into fo_. 

3. The Convc:nti.oo between the Oovemment ofthC 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 signed at WlI$hIngton on 8th 

ofOctoher 1974 (herejnafterrefem:d to as "the 1974 convention") shall cease to have effect 

in relation to any tax fu:nn the date upon which this Convention bas effc:et in respect of such 

tax in accordance wi1h the provisions of paragmph 2 of this Article. The 1974 convention 

shall terminatA: on the last date on which it bas effect in re1alion to any tax in accordance with 

the foregoing provisions of this paragraph. 

4. NotwUhsbonding the entry into force of this Convention, an individual who was 

entitled to benefits of Micle 17 (Teachers), Miele 18 (Students and Trainees) or Article 19 

(Oovernrnent Functions) of the 1974 convention at the time of the entry into force of this 

Convention shall continue to be entitled to such benefits until such time as the individual 

would cease to be entitled to such benefits if the 1974 convention remained in force. 
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39 

ArtkleZ9 

TERMINATION 

This Convention shall renutin in force until tet:minatcd by one of the Co_ting 

StateS. Either Contracting State may tetminate the Convention by giving notice of 

tet:mination to the other Co_ting State through diplomatic channels on or befOG the 

thir1ieth day of June in IlUY calendar year beginning after the year in which the Convention 

enters into force. In such event, the Convention shall cease to have effect: 

a} in respect of taxes withheld at source, for amounts paid or credited on or after 

the firs! day of JanlllllY of the calendar yew: next following the date on which the 

notice is given; and 

b) in respect of other taxes, for taxable periods beginning on or after the first day 

of January of the calendar year neet following the date on which the notice is given. 

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto by their 

respective (jovernments, have signed this Convention. 

DONE at Warsaw, in duplkate, in the English and Polish languages, both texts being 

equally flUthentic, this thirteenth day ofFebIuary, 2013. 

FOR THE UNITED STATES OF AMERlCA; FOR TIIE REPUBLIC OF POLAND: 

o