The MLI Convention and the taxation of pensions from abroad in Poland

The MLI Convention changed the method of avoiding double taxation in some of the agreements concluded by Poland on the avoidance of double taxation (abbreviation: DTT). The exemption with progression method has been replaced by the credit method.

Consequences of the MLI Convention for pensions from abroad

How does the adoption of the new method affect the tax obligations of people receiving foreign pensions and what are the obligations of the bank as a payer in such a situation?

It should be noted that in order to avoid double taxation, most agreements concluded by Poland adopted the principle of applying the exemption with progression method. This means that if a given benefit is taxed in the other state (i.e. the given treaty allows for taxation of the benefit in the source state), then the amount of this benefit is tax exempt in Poland.

However, the notification of the application of …

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