New double tax treaty between Poland and Singapore
On 4 November 2012 a new agreement was signed between the Government of the Republic of Poland and the Government of the Republic of Singapore for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. The agreement still needs ratification and publication in the Journal of Laws, so it will be effective no earlier than as of 2014.
The new agreement implements a less favourable (for the taxpayers) method of avoiding double taxation in Poland, i.e. proportional deduction instead of exemption applicable previously.
In addition, the rates of withholding tax on dividends, interest and royalties have been lowered.
The agreement also implements a full clause regarding the exchange of information in tax matters. So in future Polish residents must take into account that the Singapore authorities may disclose information regarding their activities bringing income in Singapore, including also funds deposited in bank accounts.