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United States - Poland tax treaty

A practical treaty page built around the official treaty text, key withholding categories, permanent-establishment rules, and article-level summaries.

Signed

1974-10-08

Effective

1974-07-23

Articles seeded

6

Withholding snapshot

Dividends

Individual rate: 15% · Corporate rate: 5%

The 5 percent corporate rate generally depends on direct ownership of at least 10 percent of the voting stock under the 1974 treaty framework. A 2013 protocol has been signed but is not yet in force, so current results follow the original treaty subject to article-level review.

Interest

Rate: 0%

The treaty generally provides zero-percent source-country interest withholding. Exceptions and beneficial-ownership conditions remain subject to article-level review.

Royalties

Rate: 10%

The treaty generally applies a 10 percent rate to most royalty categories under the 1974 framework. The pending protocol would change several rates, but until ratified the original treaty rates control.

Permanent establishment

Construction threshold: more than 18 months under the 1974 treaty

Dependent-agent analysis under the 1974 wording remains important where a person habitually concludes contracts on behalf of the enterprise.

Other treaty flags

Pensions: residence
Protocols: None seeded
Exchange of information: Yes
Student article: Yes
Teacher article: Yes

The 1974 Poland treaty generally allocates private pensions to the residence state. Government pensions and social-security payments follow distinct rules and deserve article-level review.

Seeded article summaries

Article 4

Residence

Defines treaty residence under the 1974 treaty framework.

The Poland treaty predates modern limitation-on-benefits drafting, so the residence article carries more of the access-to-benefits work than in newer treaties. The pending 2013 protocol would add an LOB-style framework, but until ratified the 1974 text controls.

Article 5

Permanent Establishment

Sets the business-presence threshold for source-country taxation.

Under the 1974 treaty, the construction-and-installation PE threshold is 18 months rather than the more modern 12-month rule. The pending protocol would update several PE provisions, but article-level review of the current text is required.

Article 7

Business Profits

Generally reserves business profits to the residence state absent a permanent establishment in the other state.

This is the operating-rule article once the PE analysis is complete. It generally keeps business profits from being taxed in the source state where no PE exists under the 1974 framework.

Article 10

Dividends

Provides reduced source-country withholding rates for qualifying dividends.

The Poland dividend article follows the 15 percent and 5 percent pattern of many older U.S. treaties. The pending protocol would modify several conditions, so the current results should be confirmed with reference to both the treaty and any protocol updates in force.

Article 11

Interest

Generally eliminates source-country withholding on qualifying interest.

Interest is one of the clearest practical benefits of the Poland treaty in its current form. The zero-percent result depends on beneficial ownership and the absence of qualifying exceptions, subject to article-level review.

Article 12

Royalties

Generally caps source-country withholding on royalties at 10 percent.

Royalties under the 1974 Poland treaty are subject to a 10 percent cap rather than the zero result common in newer U.S. treaties. The pending protocol would reduce certain royalty rates if and when it enters into force.

Official text

Other treaties involving these jurisdictions

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Primary sources

Important disclaimer

This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.