According to Article 3 of the Polish Personal Income Tax Act, an individual is considered a tax resident in Poland if they meet any of the following criteria:
- They have their permanent place of residence in Poland.
- They stay in Poland for more than 183 days in a calendar year.
- They have their center of vital interests (family, economic, social) in Poland.
For entities, the Corporate Income Tax Act defines tax residency based on the following criteria:
- The entity is incorporated in Poland.
- The entity's management and control are located in Poland.
Impact of International Tax Treaties on Tax Residency Criteria
Poland has entered into numerous tax treaties with other countries to avoid double taxation and promote cross-border trade and investment. These treaties may modify or provide exceptions to the standard criteria for tax residency as defined in domestic law.
For example, the Poland-Germany tax treaty provides that an individual is considered a resident of Poland if they have their permanent home in Poland or if their habitual abode is in Poland. The treaty also includes a tie-breaker rule for individuals who are considered residents of both Poland and Germany under each country's domestic law.
The Poland-US tax treaty provides that an individual is considered a resident of Poland if they have a permanent home in Poland or if they are present in Poland for more than 183 days in a calendar year. The treaty also includes a tie-breaker rule for individuals who are considered residents of both Poland and the US under each country's domestic law.
These treaty-specific modifications aim to provide clarity and prevent double taxation by establishing clear rules for determining tax residency in cases involving cross-border activities. They reflect the mutual agreement between Poland and the other country to facilitate tax compliance and enhance economic cooperation between the two countries.
If you need any other informational tax guides for other countries, feel free to browse our other articles below:
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