Publication date: 13.11.2024
Avoiding double taxation: how the agreement between Ukraine and Poland helps
The tax agreement between Ukraine and Poland is an important tool for protecting citizens and entrepreneurs from double taxation. Thanks to this agreement, it is possible to avoid situations where the same income is taxed twice: first in the country where it is earned, and then in the country of tax residence. Such a problem often arises among citizens of Ukraine who work, study or invest in Poland.
What is a double taxation agreement?
The Double Taxation Agreement between Ukraine and Poland was designed to establish rules that would determine in which country a certain type of income should be taxed. It covers various sources of income, including wages, dividends, income from real estate and others. In addition to avoiding double taxation, the agreement aims to create favorable conditions for investments between countries.
Main provisions of the agreement:
- Lowering the tax rate for certain types of income.
- Prevention of tax evasion.
- Determination of the country responsible for income taxation.
This agreement allows citizens of Ukraine and Poland, who have income in both countries, to effectively plan their tax obligations and avoid additional financial costs.
How to determine tax status in Poland?
In order to take advantage of the deal, you need to determine your tax status. Depending on the number of days of stay in Poland and the center of personal and economic interests, a person may be considered a tax resident of Poland or Ukraine.
Question
What is a tax resident of Poland?
Answer
A tax resident of Poland is a person who lives in Poland for more than 183 days a year or has a center of vital interests here. Residency requires reporting in Poland even for income received outside the country. You may need to consult an attorney to determine your exact status.
The tax status is decisive for the choice of the country that should tax the income. That is why it is important to conduct a legal analysis of a situation and use the services of a lawyer to analyze documents and correctly prepare declarations.
How income from labor is taxed
Persons working in Poland often face the issue of double taxation, when income is taxed both in Ukraine and in Poland. To avoid this, it is enough to submit a declaration in one of the countries in accordance with the provisions of the agreement.
Steps to avoid double taxation:
- Confirmation of tax resident status.
- Document analysis confirming income.
- Submission of a declaration taking into account the taxes paid abroad.
A lawyer in Poland can help prepare the necessary documents and conduct a legal analysis of a situation. The preparation of documents may require a professional approach in order to maintain all necessary tax proofs.
What revenues does the agreement between Ukraine and Poland cover?
The agreement covers different categories of income: from wages to investment income. This means that regardless of whether the income is from work, business or investment, the agreement ensures that double taxation is avoided. Consulting with a lawyer will determine whether your income is covered by the agreement.
Types of income covered by the agreement:
- Salary.
- Profit from entrepreneurial activity.
- Income from investments and rental of real estate.
- Dividends and other passive income.
An online lawyer can provide written advice on filling out tax forms and help you understand the terms of the agreement so that you can properly file all income.
Lawyer's consultation regarding the application of tax deductions
The use of tax deductions allows you to significantly reduce the amount of tax payments. However, for this it is necessary to correctly confirm residency and declare all necessary income. An online lawyer can give written advice on the procedure for submitting documents, as well as check documents by a lawyer before submitting them to the tax authorities.
The role of legal analysis of the documents
Legal analysis of the documents allows you to avoid mistakes when submitting a declaration. The analysis helps determine what income and how it should be declared to avoid additional financial losses.
Advantages of legal analysis of the documents:
Verification of documents by a lawyer to minimize risks.
Written consultation on the preparation of declarations.
Written advice for correct submission of documents.
A professional legal analysis of a situation can help avoid fines and additional inspections. A qualified lawyer in Warsaw will help with a legal opinion and correct filling of documents.
Peculiarities of investment income taxation
Taxation of investment income, such as dividends or gains from the sale of securities, is also governed by the agreement. This is important for investors who work in both markets. A lawyer in Warsaw will help analyze the situation to determine whether your investment is covered by the agreement.
Question
How does the deal affect taxes for investors?
Answer
A double taxation agreement allows for a lower tax rate on investment income. This reduces the total amount of payment, which makes investments in Poland more profitable. A lawyer in Poland will help you analyze the documents so that you can take advantage of all available discounts.
Legal advice will provide you with a reliable legal opinion, which will allow you to minimize the tax burden on investments.
How a lawyer in Poland helps to avoid tax problems
Difficulties may arise when submitting declarations abroad. In such situations, an online lawyer will be able to provide written advice and legal analysis of the documents. A lawyer's consultation includes document analysis, verification of declarations, as well as written advice on international taxation.
Services of a lawyer in Poland:
- Verification of documents by a lawyer.
- Written advice on tax matters.
- Lawyer's consultation on individual issues.
- Preparation of documents for tax authorities.
By contacting a lawyer in Poland, you will receive a legal opinion of a lawyer on the correct filling out of tax documentation, as well as a professional legal analysis of a situation.
Advantages of contacting a lawyer in Warsaw
A lawyer in Warsaw knows the local law well and will help you prepare all the documents to avoid double taxation. He will also be able to help with tax issues for investors and entrepreneurs. Consulting a lawyer will avoid difficulties when working with the tax authorities of Poland.
Services provided by a lawyer in Warsaw:
- Lawyer's consultation regarding tax obligations.
- Preparation of documents for taxation in Poland.
- Legal advice on taxation of investment income.
A qualified lawyer in Warsaw will help you deal with taxation issues, and a legal analysis of a situation will help you avoid mistakes when submitting declarations.
The Double Taxation Agreement between Ukraine and Poland is a key tool for citizens who receive income in both countries. It allows you to avoid double taxes and ensure legal support from professional lawyers. Thanks to the services of a lawyer in Poland, you can get a legal opinion, legal analysis of the documents, as well as written advice on international taxation. To receive qualified assistance, we recommend contacting the CONSULTANT marketplace, where experienced specialists will help you avoid tax risks and minimize financial losses.
