• 1. Freight tax

Freight tax

Income Tax : 10% of outward freight earnings.

Remittances made to companies registered in what is referred to as a "tax haven" (see remarks) will be subject to 10% withholding tax.


Exemption Agreements
Residents of the following countries may benefit from double taxation agreements, which reduce or waive the income tax. 

Country Reduction Date of entry
into force
Date of effect
Albania 1,2 100% 27/06/1994 01/01/1995
Armenia 100% 27/02/2005 01/01/2006
Australia 100% 04/03/1992 01/01/1993
Austria 1,3 100% 01/04/2005 01/01/2006
Azerbaijan 100% 20/01/2005 01/01/2006
Bangladesh 50% 28/01/1999 01/01/2000
Belarus 100% 30/07/1993 01/01/1994
Belgium 1,3 100% 29/04/2004 01/01/2005
Bosnia-Herzegovina 1,3 100% 27/12/1985 01/01/1986
Bulgaria 1,3 100% 10/05/1995 01/01/1996
Canada 1 100% 30/11/1989 01/01/1989
Canada (Renegotiated) 100% 30/10/2013 01/01/2014
Chile 100% 30/12/2003 01/01/2004
China 1,2,4 100% 07/01/1989 01/01/1990
Croatia 1,3 100% 11/02/1996 01/01/1997
Cyprus 100% 07/07/1993 01/01/1992
Czech Republic 1,3 100% 20/12/1993 01/01/1994
Czech Republic (Renegotiated) 100% 11/06/2012 01/01/2013
Denmark 1 100% 31/12/2002 01/01/2003
Egypt 1,2 100% 16/07/2001 01/01/2002
Estonia 100% 09/12/1994 01/01/1995
Finland 1,2 100% 30/03/1979 01/01/1980
Finland (Renegotiated) 100% 11/03/2010 01/01/2011
France 1,3 100% 12/09/1976 01/01/1974
Georgia 1,3 100% 31/08/2006 01/01/2007
Germany 1,3 100% 19/12/2004 01/01/2005
Greece 100% 28/09/1991 01/01/1992
Hungary 1,3 100% 10/09/1995 01/01/1996
Iceland 1,2 100% 20/06/1999 01/01/2000
India 1,2,5 See note 26/10/1989 01/01/1990
Indonesia 100% 25/08/1993 01/01/1994
Iran 100% 01/12/2006 01/01/2007
Ireland 100% 22/12/1995 01/01/1996
Israel 1,2 100% 30/12/1991 01/01/1992
Italy 1,2 100% 26/09/1989 01/01/1984
Japan 100% 23/12/1982 01/01/1983
Jordan 1,3 100% 22/04/1999 01/01/2000
Kazakhstan 100% 13/05/1995 01/01/1996
Korea, Republic of 100% 21/02/1992 01/01/1991
Kuwait 1,3 100% 25/04/2000 01/01/1996
Kyrgyzstan 100% 22/06/2004 01/01/2005
Latvia 100% 30/11/1994 01/01/1995
Lebanon 1,2 100% 07/11/2003 01/01/2004
Lithuania 100% 19/07/1994 01/01/1995
Luxembourg 1,3 100% 11/07/1996 01/01/1997
Macedonia, TFYR 100% 17/12/1999 01/01/2000
Malaysia 100% 05/12/1978 01/01/1977
Malta 1,2 100% 24/11/2994 01/01/1995
Malta (Amendment) 1,2 100% 22/11/2011 01/01/2012
Mexico 100% 06/09/2002 01/01/2003
Moldova 100% 27/10/1995 01/01/1996
Mongolia 1,2 100% 21/07/2001 01/01/2002
Montenegro 1,3 100% 17/06/1998 01/01/1999
Morocco 1,3 100% 29/03/1995 01/01/1997
The Netherlands 1,3 100% 18/03/2003 01/01/2004
New Zealand 100% 16/08/2006 01/01/2007
Norway 1,2 100% 30/10/1979 01/01/1976
Pakistan  100% 24/11/1975 01/01/1973
The Philippines 1,3, 6 See Note 07/04/1997 01/01/1998
Portugal 1,2 100% 04/02/1998 01/01/1999
Qatar 1 100% 30/12/2009 01/01/2010
Romania 1,3 100% 15/09/1995 01/01/1996
Russia 100% 22/02/1993 01/01/1994
Saudi Arabia 1,2 100% 01/06/2012 01/01/2013
Serbia 1,3 100% 17/06/1998 01/01/1999
Singapore 1 50% 25/12/1993 01/01/1993
Singapore (Renegotiated) 1 100% 06/02/2014 01/01/2015
Slovakia 1,3 100% 21/12/1995 01/01/1996
Slovenia 1,2 100% 10/03/1998 01/01/1999
South Africa 1,2 100% 05/12/1995 01/01/1996
Spain 1,2 100% 06/05/1982 01/01/1983
Sri Lanka 1 100% 21/10/1983 01/01/1983
Sweden 100% 15/10/2005 01/01/2006
Switzerland 1,3 100% 25/09/1992 01/01/1993
Syria 1,2 100% 23/12/2003 01/01/2004
Tajikistan 100% 24/06/2004 01/01/2005
Thailand 7 0% 13/05/1983 01/01/1983
Tunisia 1,2 100% 15/11/1993 01/01/1994
Turkey 100% 01/10/1996 01/01/1998
Ukraine 100% 11/03/1994 01/01/1995
United Arab Emirates 1,3 100% 21/04/1994 01/01/1995
United Kingdom 1,2 100% 27/12/2006 01/01/2007
United States 100% 23/07/1976 01/01/1974
Uzbekistan 100% 29/04/1995 01/01/1996
Vietnam  100% 20/01/1995 01/01/1996
Zimbabwe 1,3 100% 28/11/1994 01/01/1995
       
Limited treaties (Sea transportation only)
Algeria 100% 08/11/1975  
Argentina 100% 28/12/1950  
Brazil 100% 26/11/1976  
Cuba 100% 01/11/1964  
Equatorial Guinea 100% 15/07/1992  
       

Double taxation agreements which are signed but not ratified

Algeria 1,2 Signed 31/01/2000  
China 8 Signed 22/10/1999  
Isle of Man Signed 07/03/2011  
Malaysia (Renegotiated) Signed 08/07/2013
Nigeria Signed 15/02/1999  
Sri Lanka (Renegotiated)
Signed 06/10/2015  
United States (Renegotiated) Signed 13/02/2013  
Uruguay 1,2 Signed 02/08/1991  
Zambia 1,3 Signed 19/05/1995  
       
Double taxation agreements under negotiation
Libya      
Namibia      
       
Notes      
         
1. Profits from the operation of ships in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
   
2. If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.
   
3. If the place of effective management of a shipping enterprise or of an inland waterways transport enterprise is aboard a ship or boat, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship or boat is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship or boat is a resident.
   
4. This treaty does not apply to residents of Hong Kong SAR, Macao SAR or the province of Taiwan.
   
5. 50% reduction when income is derived by an Indian company from the operation of ships from Polish ports to the ports of third countries and vice versa.

100% reduction when income is derived by an Indian company from the operation of ships from Polish ports to Indian ports and vice versa.
   
6. The tax charged shall not exceed 1.5% of the gross revenues.
 
7. The treaty only covers air transportation.
 
8.

This treaty applies only to residents of Macao, SAR.

       
 

Remarks:

Connections advise that Polish withholding agents are obliged to automatically deduct from freight payments the 10% withholding tax if beneficiaries, as stated in the freight invoice(s), are residents of a  country or territory regarded as a tax haven.  

Countries / territories regarded as tax havens

Alderney Macao, SAR
Andorra Liechtenstein
Anguilla Maldives
Antigua & Barbuda Marshall Islands
Aruba Mauritius
Bahamas Monaco
Bahrain Montserrat
Barbados Nauru
Belize Netherlands Antilles
Bermuda Niue
British Virgin Islands Panama
CaymanIslands Samoa
Cook Island Sark
Dominica Seychelles
Gibraltar St. Kitts and Nevis
Grenada St. Lucia
Guernsey St. Vincent and The Grenadines
Hong Kong, SAR Tonga
Isle of Man Turks and Caicos Islands
Jersey US Virgin Islands
Liberia Vanuatu


Latest Related News

View All News