Double Tax Treaty between Luxembourg & Poland | Damalion

CONVENTION

between the Grand Duchy of Luxembourg and the Republic of Poland for the avoidance of double taxation and the prevention of fiscal Fiscal Evasion with respect to Taxes on Income and wealth

 

The Grand Duchy of Luxembourg and the Republic of Poland,

Desiring to conclude a Convention For the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income Capital]

Article 1

Persons covered

This Convention shall apply to persons who are residents of one or both of the Contracting State.

 

Article 2

Taxes covered

  1. The existing taxes to which the Convention shall apply are

(a) in the case of Luxembourg:

(i) the personal income tax;

(ii) the impôt sur le revenu des collectivités;

(iii) the special tax on directors’ fees

(iv) the wealth tax and

(v) the municipal business tax based on operating profit and capital;

(hereinafter referred to as “Luxembourg tax”);

(b) in respect of Poland:

(i) the personal income tax, and

(ii) the tax on the income of legal persons;

(hereinafter referred to as “Polish tax”).

  1. The Convention shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of the Convention and which are in addition to or in place of the existing The Convention shall also apply to any identical or substantially similar taxes imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any substantial changes which may be made in their respective taxation laws.

 

Article 3

General Definitions

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

(a) the terms “a Contracting State” and “the other Contracting State” mean, as the context requires, Luxembourg or Poland

(b) the term “Luxembourg” used in a geographical sense means the territory of the Grand Duchy of Luxembourg;

(c) “Poland” means, in a geographical sense, the territory of the Republic of Poland, including any area outside the territorial waters of Poland which in accordance with international law and under Polish law has been or may be designated as an area over which Poland may exercise its exercise its sovereignty rights with respect to the exploration and exploitation of the natural resources of the sea bed or the subsoil;

(d) the term “nationals” means:

(i) all natural persons who possess the nationality of a contracting State

(ii) all legal persons, partnerships and associations formed under the laws in force in a Contracting State;

(e) the term “person” includes an individual, a company and any other body of persons;

(f) the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes

(g) the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State

(h) the term “international traffic” means any transport by a ship, aircraft or road vehicle operated by an enterprise whose place of effective management is in a Contracting State, except where the ship, aircraft or road vehicle is operated by an enterprise whose place of effective management is in a Contracting State, the ship, aircraft or road vehicle is operated only between places in the other Contracting State;

(i) the term “competent authority” means:

(i) in relation to Luxembourg, the Minister of Finance or his authorized representative

(ii) in relation to Poland, the Minister of Finance or his authorized representative.

  1. For the purposes of the application of the Convention by a Contracting State, any term not defined therein shall have the meaning which it has under the law of that State concerning the taxes to which the Convention applies, unless the context otherwise requires different interpretations.

 

Article 4

Resident

  1. For the purposes of this Convention, the term “resident of a Contracting State” means means any person who, under the laws of that State, is liable to tax in that State by reason of his domicile, residence, place of management or any other criterion of a similar nature. However, this term does not However, this term shall not include any person who is subject to tax in that State in respect only of income from sources in that State or of capital situated therein.
  1. Where, under the provisions of paragraph 1, an individual is a

(a) he shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available in both States, he shall be deemed to be a resident of the State with which his personal and economic

(b) if the State in which the person’s centre of vital interests is situated cannot be determined, or if the person does not have a permanent home in either State, the person shall be deemed to be a resident of the State in which the person has an habitually staying;

(c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national;

(d) if such person is a national of both States or of neither of them, the competent authorities of the Contracting shall settle the question by mutual agreement.

  1. Where under the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, he shall be deemed to be a resident of the State in which his place of effective management is situated.

 

Article 5

Permanent Establishment

  1. For the purposes of this Convention, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on. part of its business.
  1. The term “permanent establishment” includes in particular:

(a) a place of management,

(b) a branch office

  1. c) an office,

(d) a factory,

(e) a workshop, and

(f) a mine, oil or gas well, quarry or other place of natural resourc extraction.

  1. A construction or assembly site constitutes a permanent establishment only if its duration exceeds twelve months.
  1. Notwithstanding the foregoing provisions of this Article, the term permanent establishment” shall be deemed not to exist if:

(a) use is made of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;

(b) goods belonging to the business are stored solely for the purpose of storage, display or delivery;

(c) goods owned by the business are stored solely for processing by another business;

(d) a fixed place of business is used solely for the purpose of purchasing goods or gathering information for the enterprise

(e) a fixed place of business is used solely for the purpose of carrying on any other activity of a preparatory or auxiliary character for the enterprise

(f) a fixed place of business is used solely for the purpose of carrying on the combined activities referred to in subparagraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from such combination remains preparatory or auxiliary characters.

  1. Notwithstanding the provisions of paragraphs 1 and 2, where a person – other than an agent with independent status to whom paragraph 6 applies – acts on behalf of an enterprise and has, and habitually exercises in a Contracting State, such powers the contracting State is the place where a person – other than an agent of an independent status to whom paragraph 6 applies – acts on behalf of an enterprise and has enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, Unless the activities of such person are limited to those referred to in paragraph 4 referred to in paragraph 4 and which, if exercised through a fixed place of business, would not qualify that place of business as a permanent establishment under the provisions of that paragraph.
  1. An enterprise shall not be deemed to have a permanent establishment in a State merely because it carries on business in that State through a broker, general commission agent or general commission agent or any other agent of an independent status, provided that such provided that such Persons are acting in the ordinary course of their business.
  1. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State or which carries on business in that other State (whether through a permanent establishment or otherwise) is not in itself sufficient to make any such company a permanent establishment of the other.

 

Article 6

Income from Real Property

  1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.
  1. The term “immovable property” shall have the meaning which it has under the law of the Contracting State where the property in question is situated. The term shall in any case include accessories, livestock and equipment of agricultural and forestry undertakings, rights to which the provisions of to which the provisions of private law concerning landed property, usufruct of immovable property of real estate and rights to variable or fixed payments for the operation or concession of the exploitation or concession of the exploitation of mineral deposits, springs and other natural resources; ships, boats and aircraft are not considered real property. ships, boats and aircraft are not considered as real estate.
  1. The provisions of paragraph 1 shall apply to income derived from the direct exploitation, rental or leasing, and any other form of exploitation of immovable property.
  1. The provisions of paragraphs 1 and 3 shall also apply to income from the real estate of an from the real estate of an enterprise as well as to the income from real estate used property used for the exercise of a self-employed profession.

 

Article 7

Business Profits

  1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business in such a manner If the enterprise carries on business in such a manner, the profits of the enterprise may be taxed in the other State but only to the extent that they are attributable to that permanent establishment.
  1. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in Contracting State carries on business in the other Contracting State through permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment shall be attributed in each Contracting State to that permanent establishment the profits which it might be expected to make if it were a separate enterprise carrying on separate enterprise engaged in the same or similar activities under the same or similar conditions the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.
  1. In determining the profits of a permanent establishment, the following shall be allowed as deductions expenses incurred for the purposes of that permanent establishment, including management

(a) the cost of the business of the enterprise of which the permanent establishment is constituted; and 

(b) the cost of the business of the enterprise of which the permanent establishment is constituted. the State in which the permanent establishment is situated or elsewhere.

  1. If it is customary in a Contracting State to determine the profits attributable to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various between its various parts, nothing in paragraph 2 shall prevent that Contracting State from determining the taxable profits according to the customary apportionment; the method of apportionment adopted shall, however, be such that the result obtained is the principles contained in this Article.
  1. No profit shall be attributed to a permanent establishment by reason of its having merely purchased goods for the enterprise.
  1. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined annually by the same method, unless there are good and sufficient grounds to proceed otherwise.
  1. Where profits include items of income which are treated separately in other Articles of this Convention, the provisions of those Articles shall not be affected by the provisions of  this Article.

 

Article 8

International Carriage

  1. 1. Profits from the operation of ships, aircraft or road vehicles in international traffic shall be taxable only in the aircraft or road vehicles shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
  1. 2. Profits from the operation of inland navigation vessels shall be taxable only in the inland navigation shall be taxable only in the Contracting State in which the place of effective of the enterprise is situated.
  1. 3. If the place of effective management of a maritime or inland navigation enterprise is on board a ship or ship or boat, that place of business shall be deemed to be situated in the Contracting State in which the the Contracting State in which the home port of that ship or boat is situated, or in the port, in the Contracting State of which the operator of the ship or vessel is a resident.
  1. The provisions of paragraph 1 shall also apply to profits from the participation in a participation in a pool, a joint business or an international operating agency.

 

Article 9

Associated enterprises

  1. Where

(a) an enterprise of a Contracting State participates directly or indirectly in the control or capital of an enterprise of the other Contracting State, or

(b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State of the other Contracting State, and in either case both enterprises are, in their commercial or financial relations, bound by agreed or imposed conditions agreed upon or imposed which differ from those which would be agreed upon between the profits which, but for these conditions, would have been made by one of the profits which, but for those conditions, would have accrued to one of the enterprises but, by reason of those conditions, could not in fact have done so, may be conditions, may be included in the profits of that enterprise and taxed accordingly.

  1. Where a Contracting State includes in the profits of an enterprise of that State – and taxes accordingly – profits on which an enterprise of the other Contracting State has been taxed in that Contracting State has been taxed in that other State, and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions agreed upon between the two enterprises would have been those which would have been between independent enterprises, the other State shall make an appropriate adjustment to the amount appropriate adjustment of the amount of tax imposed therein on such profits. In determining such adjustment, due regard shall be had to the other provisions of this Convention and, if necessary, the competent authorities of the Contracting States shall consult each other.

Article 10

Dividends

 

  1. Dividends paid by a company that is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.
  1. 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, the tax so assessed shall not exceed

(a) 0 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) that directly holds at least 10 percent of the capital of the company paying the dividends during an uninterrupted period of at least one year uninterrupted period of at least 24 months preceding the date of payment of the dividends;

(b) 15 percent of the gross amount of the dividends, in all other cases. This paragraph shall not affect the taxation of the company in respect of the profits used to pay the dividends.

  1. The term “dividends” as used in this section means income derived from shares, profit sharing certificates, mining shares, founder’s shares or other profit shares, with the shares, with the exception of claims, as well as income from other shares subject to the same tax treatment as income from shares under the law of the State in which the State of which the distributing company is a resident.
  1. The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of the dividends, a resident of a Contracting State, carries on business in the other of which the company paying the dividends is a resident, carries on business in the other Contracting business activity through a permanent establishment situated therein, or performs independent personal services from a fixed base situated therein, and that the holding in respect of which the dividends are paid is effectively connected with it. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.
  1. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, the company shall be deemed to have income of the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except to the extent that such dividends are paid to a resident of that other State or to the extent that the holding in respect of which the dividends are paid is effectively connected dividends is effectively connected with a permanent establishment or a fixed base situated in that other State, nor impose any tax on the undistributed profits by reason of the taxation of distributed profits, on the undistributed profits of the company, even if the dividends paid or undistributed profits consist wholly or partly of profits or income arising in that other State.

Article 11

Interest

  1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
  1. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the arising therefrom and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 5 percent of the exceed 5 percent of the gross amount of the interest.
  1. Notwithstanding the provisions of paragraph 2, interest on bank credits and loans arising in a loans and credits originating in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State.
  1. Notwithstanding the provisions of paragraph 2, interest accruing to a resident by a Contracting State shall be exempt from tax by the other Contracting State.
  1. The term “interest” as used in this section means income from debt obligations of every kind, whether or not secured by mortgage or by a participation in the debtor’s profits, and includes income from public funds and bonds, including premiums and prizes attached thereto. The penalties for late payment shall not be considered as interest within the meaning of this section.
  1. The provisions of paragraph 1 shall not apply where the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in the other Contracting State by means of a fixed base situated therein, and the debt-claim arising therefrom In such a case, the provisions of Article 3(1)(a) shall apply. In this case, the provisions of Article 7 or Article 14, as the case may be, shall apply.
  1. Interest shall be deemed to arise in a Contracting State when the debtor is that State itself, a debtor is that State itself, a political subdivision, a local authority or a resident of that State. However, where the payer of the interest, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment or a fixed base, in respect of which the indebtedness on which the interest is paid was incurred and which the indebtedness giving rise to the interest was incurred and which bears the expense of that interest, such interest shall be deemed to arise in the State in which the State in which the permanent establishment or fixed base is situated.
  1. Where, by reason of a special relationship between the payer and the beneficial owner or where both beneficiary or between both of them and third persons, the amount of the interest, taking into account interest, taking into account the claim for which it is paid, exceeds that which would have been the debtor and the beneficial owner would have agreed in the absence of such relationship, the provisions of this article shall apply only to the latter amount. In such a case, the excess part of the payments shall remain taxable according to the laws of each Contracting State and having regard to the other provisions of this Convention.

 

Article 12

Royalties

  1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 
  1. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the arise and according to the laws 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 percent of the gross amount of the royalties.
  1. The term “royalties” as used in this Article means remuneration of any kind paid for the use of, or the right to use, any copyright of literary, artistic or scientific work, including cinematograph films and works films and works recorded for radio or television, a patent, a trademark or a right to use patent, trademark, design or model, plan, formula or method, or any other intellectual property right secret plan, formula or process, and for information relating to industrial experience in the industrial, commercial or scientific field.
  1. The provisions of paragraphs 1 and 2 shall not apply of the royalties, being a resident of a Contracting State, carries on business in the other State in which the royalties arise, carries on business in that other State through a business activity through a permanent establishment situated therein, or independent personal services from a fixed base situated therein and the right or property in respect of which the property in respect of which the royalties are paid is effectively connected with it. In such case, the provisions of In such case, the provisions of Article 7 or Article 14, as the case may be, shall apply.
  1. Royalties shall be deemed to arise in a contracting State when the payer is that State itself, a political subdivision, a local authority, or a resident of that State. However, where the payer of the royalties, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment or a fixed base in a Contracting State in connection with which the contract giving rise to the payment of the royalties was made in which the royalties are borne, those royalties shall be deemed to arise in the Contracting State in which the Contracting State in which the permanent establishment or fixed base is situated.
  1. Where, by reason of a special relationship between the payer and the beneficial owner, or between both of them and third persons, the amount of the royalties paid, having paid, taking into account the performance for which they are paid, exceeds the amount of royalties paid, having regard to the performance for which they are paid, exceeds the amount that would have been agreed upon by the debtor and the beneficial owner in the absence of such relationship, the provisions of the relationship, the provisions of this article shall apply only to the latter 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 this Convention.

 

Article 13

Capital Gains

  1. Gains derived by a resident of a Contracting State from the alienation of real property referred to in Article 6 and situated in the other Contracting State may be taxed in that another State.
  1. Gains from the alienation of movable property forming part of the business property of a permanent establishment that an enterprise of a Contracting State has in the other Contracting State, or Contracting State, or of movable property pertaining to a fixed base which a resident of a Contracting State available to a resident of the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such permanent establishment (alone or with the whole enterprise) or fixed base, may be taxed in that other State.
  1. Gains from the alienation of ships, aircraft or road vehicles operated in international traffic operated in international traffic, inland waterway vessels or movable property used in the property used in the operation of such ships, aircraft, road vehicles or boats shall be taxable only in the ships, road vehicles or boats, shall be taxable only in the Contracting State in which the place of the enterprise is situated.
  1. Gains derived by a resident of a Contracting State from the alienation of shares which derive directly or indirectly more than 50 percent of their value from real property situated property situated in the other Contracting State may be taxed in that other State.
  1. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 4 shall be taxable only in the Contracting State of which the alienator is a resident

 

Article 14

Independent Personal Services

  1. Income derived by a resident of a Contracting State in respect of professional services or activities of an independent character shall be taxable only in that State unless that resident has unless that resident has a fixed base regularly available in the other Contracting State for the purpose of a fixed base for the performance of his activities. If he has such a fixed base, the income may be taxed in the other State but only to the extent that it is attributable to that attributable to that fixed base.
  1. The term “professional services” includes in particular independent activities of a scientific, literary, artistic, educational or teaching nature, as well as the activities of doctors, lawyers, engineers, architects, dentists and accountants.

 

Article 15

Dependent Professions

  1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is performed in the other Contracting State. If the employment is exercised in that State, remuneration received in respect thereof may be taxed in that State.
  1. Notwithstanding the provisions of paragraph 1 remuneration 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

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the taxable year concerned, and

(b) the remuneration is paid by or on behalf of an employer who is not a resident of the other State, and

(c) the remuneration is not borne by a permanent establishment or fixed base which the employer has in the other State.

  1. Notwithstanding the preceding provisions of this Article, remuneration received in respect of an employment exercised aboard a ship, aircraft or road vehicle operated in international traffic, or vehicle operated in international traffic, or on board a vessel used for inland navigation, may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.

 

Article 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 resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.

Article 17

Artists and Athletes

  1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State from his personal activities as an entertainer, such as a theatre, motion picture or as an entertainer, such as a theater, motion picture, radio or television artiste, or a musician, or as an athlete, may be taxed in that other State.
  1. Where income from activities which an entertainer or sports person performs personally in that capacity is in that capacity is attributed not to the entertainer or athlete himself but to another person, such income may be taxed, notwithstanding the provisions of the provisions of Articles 7, 14 and 15, in the Contracting State in which the activities of the activities of the artist or sportsman are carried on.
  1. Notwithstanding the provisions of paragraphs 1 and 2, income from activities defined in paragraph 1 and exercised within the framework of cultural exchanges approved by the the State of which the artists or sportsmen are residents, shall be taxable only in that State.

 

Article 18

Pensions

  1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a Contracting State in respect of past employment shall be taxable only in that State.
  1. Notwithstanding the provisions of paragraph 1, pensions and other amounts paid under the social security laws of a Contracting State may be taxed in that State.

Article 19

Public Offices

  1. (a) Remuneration, other than a pension, paid by a Contracting State or a political subdivision or local authority thereof to an individual in respect of services rendered to that State or subdivision or local authority shall be taxable only in that State.

(b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered 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 services.

  1. (a) Pensions paid by a Contracting State or any of its political subdivisions or local authorities, either directly or out of funds established by them, to an individual in respect of services rendered to that State or

(b) However, such pensions shall be taxable only in the other Contracting State if the individual is a resident of that State and has the nationality of that State.

  1. The provisions of Articles 15, 16 and 18 shall apply to remuneration and pensions paid in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or local authority thereof or local authorities.

 

Article 20

Students and Trainees

  1. 1. Amounts that a student or trainee who is, or immediately before visiting a Contracting State was to stay in a Contracting State, a resident of the other Contracting State and who is staying in the first-mentioned Contracting State solely for the purpose of furthering his education or training to cover his maintenance, education or training, shall not be taxable in that State, to the extent that shall not be taxable in that State, provided that such remuneration is derived from sources outside that State.
  1. Without prejudice to the provisions of paragraph 1, remuneration received by a student or trainee who is, or who was immediately before entering a Contracting State, a resident of the Contracting State, a resident of the other Contracting State and who is present in the first-mentioned Contracting State solely for the purpose of furthering his education or training, receives in respect of services rendered in the first-mentioned State shall not be taxable in the first-mentioned State provided that such services are related to his education or training or that the remuneration for such services is necessary to supplement the resources available to him for his maintenance.
  1. The provisions of paragraph 2 shall cease to apply if the stay in the first-mentioned Contracting State exceeds either the first-mentioned Contracting State exceeds either the normal duration of the studies undertaken in that or, in the case of a trainee, a period of three years from the date of his first arrival in that State for the purpose of three years from his first arrival in that State for the purpose of such stay.

 

Article 21

Professors

  1. Remuneration of any kind for professors and other members of the teaching staff, resident in a Contracting State, who are temporarily present in the other Contracting State for the purpose of the other contracting state for the purpose of teaching or scientific research, for a period not exceeding two years, at a university or other officially recognized officially recognized educational institution, shall be taxable only in the first-mentioned State.
  1. The provisions of paragraph 1 shall not apply to income from research work, if such work is not undertaken in the public interest but primarily for the the realization of a special benefit for a particular person or persons.

 

Article 22

Other income

  1. Items of income of a resident of a Contracting State, wherever arising not dealt with in the foregoing Articles of this Convention shall be taxable only in that State.
  1. The provisions of paragraph 1 shall not apply to income other than income from income from real property as defined in paragraph 2 of Article 6, where the recipient of such Article 6, where the recipient of such income, being a resident of a Contracting State carries on business in the other Contracting State through a permanent establishment through a permanent establishment situated therein, or performing independent personal services by means of a fixed base situated therein, and the right or property in respect of which the property is effectively connected with it. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

 

Article 23

Assets

  1. 1. Capital represented by immovable property referred to in Article 6 owned by a resident of a Contracting State and situated in the other Contracting State shall be treated as capital.
  1. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or by movable property pertaining to a fixed base available to a resident of a Contracting State has in the other Contracting State for the purpose of performing independent personal services, may be taxed in that other State.
  1. Capital represented by ships, aircraft and road vehicles operated in international traffic, by inland waterway vessels and by movable property pertaining to their operation, or vessels, shall be taxable only in the Contracting the Contracting State in which the place of effective management of the enterprise is situated.
  1. All other elements of the capital of a resident of a Contracting State shall be taxable only in that State.

 

Article 24

Elimination of Double Taxation

  1. 1. Subject to the provisions of the laws of Luxembourg regarding the elimination of double the elimination of double taxation which do not affect the general principle thereof, double taxation shall be eliminated in the following manner:

(a) Where a resident of Luxembourg derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Poland, Luxembourg shall exempt such income or capital from tax, subject to the provisions of subparagraphs (a) and (b). the provisions of subparagraphs (b) and (c), but may, for the purpose of calculating the amount of tax on the remainder of the income or capital of the resident, apply the same rates of the same rates of tax as if the income or capital had not been exempted.

(b) Where a resident of Luxembourg receives items of income which, in accordance with the provisions of Articles 10, 11, 12, paragraph 4 of Article 13 and Article 17, may be taxed in Poland, Luxembourg shall grant a deduction from the personal income tax or the corporate income tax of such resident, a deduction from the resident, a deduction from the personal income tax or the corporate income tax of such resident in an amount equal to the tax paid in Poland. This deduction may not, however, exceed the fraction of the tax, calculated

(c) The provisions of subparagraph (a) shall not apply to income received or capital owned by a resident of the provisions of this Convention to exempt such income or capital from tax, or capital or applies the provisions of paragraph 2 of Article 10, 11 or 12 to such income or income.

  1. In Poland, double taxation shall be eliminated in the following manner:
  1. a) Where a resident of Poland derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Luxembourg, Poland shall exempt such income or capital from tax, subject to the provisions of the provisions of subparagraphs (b) and (c), but may, for the purpose of calculating the the tax on the remaining income or capital of that resident, take into account the exempted income or capital exempted.

(b) the taxpayer is not entitled to deduct from the income tax or capital gains tax of that resident an amount equal to the tax paid in Luxembourg. This deduction may not, however, exceed the fraction of the tax, calculated before deduction, corresponding to these items of income or to these capital gains received from Luxembourg.

(c) The provisions of subparagraph (a) shall not apply to income received or to capital owned by a resident of the provisions of this Convention to exempt such income or capital from tax or shall apply the provisions of capital or applies the provisions of paragraph 2 of Article 10, 11 or 12 to such income or income.

 

Article 25

Non-Discrimination

  1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than those to which nationals of that other State in the same circumstances are or may be subject. in the same situation. This provision shall also apply, notwithstanding the provisions of Article 1, to persons who are not residents of one or both of the Contracting State or of both Contracting States.
  1. The taxation of a permanent establishment which an enterprise of a Contracting State has in the Contracting State shall not be less favorably assessed in that other State than the taxation of less favorable than the taxation of enterprises of that other State carrying on the same activity. This provision shall not be construed to require a Contracting State to grant to residents of the other Contracting State personal allowances and reductions for personal circumstances or family responsibilities that it This provision shall not be construed to require a Contracting State to grant to residents of the other Contracting State the personal allowances, reliefs and reductions for status or dependency that it grants to its own residents.

(3) Unless the provisions of paragraph 1 of Article 9, paragraph 8 of Article 11 or paragraph 6 of Article 12 are applicable, interest, royalties and other expenses paid by an enterprise of a Contracting State to a resident of the other Contracting State shall be deductible in determining the taxable profits of that profits of that enterprise under the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of the determination of the taxable capital of that enterprise, under the same conditions as if they had been contracted with a resident of the first-mentioned State.

  1. Enterprises of a Contracting State, the capital of which is wholly or partly directly or indirectly, owned or controlled by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any tax or duty thereon or more burdensome than those to which other similar enterprises are or may be other similar enterprises in the first-mentioned State.
  1. The provisions of this Article shall apply, notwithstanding the provisions of Article 2, to taxes of every kind and description.

 

Article 26

Amicable procedure

  1. Where a person considers that the actions of one or both of the Contracting States result or will result in taxation not in accordance with the provisions of this in accordance with the provisions of this Convention, he may, irrespective of the remedies provided for by the domestic law of those States, submit his case to the competent authority of the Contracting State of which it is a resident or, if its case comes under paragraph 1 of the Contracting State of which 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 nationality. The case must be submitted within three years from the first notification of the measure that results in taxation not in accordance with the provisions of the Convention.
  1. The competent authority shall endeavor, if the objection appears to it to be well-founded and if it is not to resolve the case satisfactorily, the competent authority shall endeavor to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to avoid taxation not in accordance with the Convention. The agreement shall be applied irrespective of The agreement shall be applied irrespective of the time limits provided by the domestic law of the Contracting States.
  1. The competent authorities of the Contracting States shall endeavor by mutual agreement to resolve agreement, to resolve any difficulties or doubts arising as to the interpretation or application of the interpretation or application of the Convention. They may also consult together with a view to eliminating double taxation in cases not provided for in the Convention.
  1. The competent authorities of the Contracting States may communicate directly with each other for the purpose of arriving may communicate directly with each other with a view to reaching agreement as provided in the paragraphs above. If oral exchanges of views appear to facilitate such agreement, such exchanges of views may\ exchange of views may take place in a Commission composed of representatives of the representatives of the competent authorities of the Contracting States.

 

Article 27

Exchange of Information

  1. The competent authorities of the Contracting States shall exchange such information as is relevant to the application of the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description taxes of every kind and description imposed on behalf of the Contracting States, their political subdivisions or their local authorities to the extent that the taxation thereunder is not contrary to the Convention. The exchange information is not restricted by Articles 1 and 2.
  1. Information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as be treated as secret in the same manner as information obtained under the domestic law of that the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of the taxes referred to in paragraph 1, in connection with the proceedings or prosecutions in respect of such taxes, decisions on appeals  in relation to such taxes, or in the enforcement of any of the foregoing. Such persons or authorities shall use such information only for such purposes. They may disclose such information in public court hearings or in judgments.
  1. In no case shall the provisions of paragraphs 1 and 2 be construed to require a Contracting State

(a) to carry out administrative measures at variance with its own laws and administrative practice or with those of the other Contracting State

(b) to supply information that is not obtainable under the laws or normal administrative practice of that or of the other Contracting State; or

(c) to supply information that would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy.

  1. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use the powers at its disposal to obtain the requested information, even if it does not need the information for its own tax purposes. The obligation in the preceding sentence is subject to the limitations of paragraph 3 unless such limitations are prevent a Contracting State from providing information solely State from communicating information solely because it has no interest in the information for its own tax purposes. of no domestic interest to it.
  1. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to allow a Contracting State to refuse to supply information solely because it is held by a solely because the information is held by a bank, other financial institution, nominee or financial institution, nominee, or person acting in an agency or fiduciary capacity, or because the information relates to the property rights of a person.

 

Article 28

Diplomatic Agents and Consular Officers

The provisions of this Convention shall not affect the fiscal privileges of diplomatic agents or consular officers diplomatic agents or consular officers under the general rules of international law or under the general rules of international law or under the provisions of special agreements.

 

Article 29

Miscellaneous Provisions

The benefits of this Convention shall not apply if the income is paid or received in connection with an artificial arrangement.

 

Article 30

Entry Into Force

  1. This Convention shall be ratified and the instruments of ratification shall be exchanged at Warsaw as soon as possible.
  1. The Convention shall enter into force thirty days after the exchange of the instruments of ratification and its provisions shall apply to

(a) to taxes due at source on income allocated or paid from the year following that in which the instruments of ratification are exchanged;

(b) other taxes for taxable periods ending on or after the first day of January following the year in which the instruments of ratification are exchanged

Article 31

Denunciation

This Convention shall remain in force until denounced by a Contracting State. Each Contracting State may denounce the Convention by diplomatically with a minimum of six months notice before the end of each subsequent calendar year beginning after the expiration of five years from the date of its entry into force. In such case, the Convention shall cease to be applicable:

(a) to taxes due at source on income allocated or paid on or after January 1 of the year following that in which the denunciation occurs

(b) other taxes for taxable periods ending no later than December 31 of the year of termination.

 

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