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Canada Signs Tax Treaty with Poland - by François Vincent and Raphael Barchichat 

Global Tax Adviser

 

May 22, 2012

 

François Vincent
Leader, Global Transfer Pricing Dispute Resolution

 

Raphael Barchichat
Montreal, International Corporate Tax

 

The Department of Finance recently announced that Canada signed a Tax Convention with Poland on May 14, 2012. The Convention includes provisions that reflect the OECD standard for the exchange of tax information. The new Convention with Poland will limit the rate of withholding tax to:

  • 5% for dividends paid between affiliated companies
  • 15% for dividends paid in all other cases
  • 5% for copyright and know-how royalties
  • 10% for payments of interest and all other royalties.

 

This Convention will enter into force after each country has notified the other that the Convention has been ratified by its government. In Canada, the Convention will apply to tax withheld at source on amounts paid or credited to non-residents beginning on January 1 of the first calendar year after the Convention has entered into force and, for other taxes, for taxation years beginning on or after January 1 in the calendar year after the Convention has entered into force.

 

For more information, contact your KPMG adviser.

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