Poland-Netherlands (EN)

Article 23

Elimination of double taxation

1. The Netherlands, when imposing tax on its resi­dents, may include in the basis upon which such ta­xes are imposed the items of income which, accor­ding to the provisions of this Convention, may be ta­xed in Poland.

2. However, where a resident of the Netherlands derives items of income which according to Article 6, Article 7, paragraph 6 of Article 10, paragraph 6 of Ar­ticle 11, paragraph 5 of Article 12, paragraphs 1 and 2 of Article 13, Article 14, paragraph 1 of Article 15, pa­ragraphs 2 and 5 of Article 18, paragraphs 1 (subpara­graph a) and 2 (subparagraph a) of Article 19 and pa­ragraph 2 of Article 22 of this Convention may be ta­xed in Poland and are included in the basis referred to in paragraph 1, the Netherlands shall exempt such items of income by allowing a reduction of its tax. This reduction shall be computed in conformity with the provisions of Netherlands law for the avoidance of double taxation. For that purpose the said items of income shall be deemed to be included in the total amount of the items of income which are exempt from Netherlands tax under those provisions.

3. Further, the Netherlands shall allow a deduction from the Netherlands tax so computed for the items of income which according to paragraph 2 of Article 11 paragraph 2 of Article 11, paragraph 2 of Article 13 paragraph 5 of Article 13, Article 16, Article 17 and paragraph 3 of Article 18 of this Convention may be taxed in Poland to the extent that these items are included in the basis referred to in paragraph 1. The amount of this deduction shall be equal to the tax pa­id in Poland on these items of income, but shall not exceed the amount of the reduction which would be allowed if the items of income so included were the sole items of income which are exempt from Nether­lands tax under the provisions of Netherlands law for the avoidance of double taxation.

4. Notwithstanding the provisions of paragraph 2, the Netherlands shall allow a deduction from the Ne­therlands tax for the tax paid in Poland on items of in­come which according to Article 7, paragraph 6 of Ar­ticle 10, paragraph 6 of Article 11, paragraph 5 of Ar­ticle 12, Article 14 and paragraph 2 of Article 22 of this Convention may be taxed in Poland to the extent that these items are included in the basis referred to in pa­ragraph 1, if and insofar as the Netherlands under the provisions of Netherlands law for the avoidance of double taxation allows a deduction from the Nether­lands tax of the tax levied in another country on such items of income. For the computation of this deduc­tion the provisions of paragraph 3 of this Article shall apply accordingly.

5. In the case of a resident of the Republic of Po­land, double taxation shall be avoided as follows:

1. Where a resident of the Republic of Poland derives income which, in accordance with the provisions of this Convention, may be taxed in the Nether­lands, the Republic of Poland shall allow as a de­duction from the tax on the income of that resi­dent, an amount equal to the income tax paid in the Netherlands. Such deduction shall not, howe­ver, exceed that part of the income tax, as compu­ted before the deduction is given, which is attribu­table to the income which may be taxed in the Ne­therlands.
2. Where in accordance with any provision of this Convention income derived by a resident of Po­land is exempt from tax in Poland, Poland may ne­vertheless, in calculating the amount of tax on the remaining income of such resident, take into ac­count the exempted income.