Poland-Singapore DTAA: Double Tax Avoidance Agreement

In this article, we delve into the Poland-Singapore Double Tax Treaty, offering a comprehensive overview tailored to individuals and businesses operating in both countries. Exploring its scope, coverage of various taxes, rules governing the taxation of different income streams, provisions for eliminating double taxation, and other notable features, this article serves as a valuable guide for optimizing tax strategies in the bilateral landscape between Poland and Singapore.
Contact Our Experts
Read Guide
poland-singapore dtaa: double tax avoidance agreement
Poland-Singapore Double Taxation Avoidance Agreement

Introduction to Singapore-Poland Business Relations

Political and economic cooperation between Poland and Singapore has seen significant advancements since the establishment of diplomatic relations in 1969. Notably, the Polish Ambassador has been based in Singapore since 2004, indicating a commitment to fostering bilateral ties. The countries have strengthened their relations through high-level visits and multilateral engagements, particularly within the United Nations and its specialized agencies.

Economic cooperation between Poland and Singapore has been marked by mutual trade interests. Traditionally, vessels constituted a significant portion of Polish exports to Singapore, although recent years have seen a shift towards diversification, with potential growth areas including machinery, precision instruments, and food products. The launch of flight operations between Warsaw and Singapore by LOT Polish Airlines in 2018 further underscores the commitment to bolstering economic ties between the two nations.

Bilateral investment between Poland and Singapore holds promise for both parties. Poland's rapidly growing economy, large internal market, and skilled workforce position it as an attractive gateway for Singaporean investors seeking access to the European market. Conversely, Singapore presents opportunities for Polish companies, particularly in the IT industry, financial innovations, and e-commerce sectors. The mutual investments and establishment of regional headquarters in both countries reflect a growing trend towards deeper economic integration and collaboration. Both countries recognize the potential for further collaboration in various sectors, including manufacturing, transport, logistics, and cybersecurity, which will contribute to the continued strengthening of their partnership on multiple fronts.

The deep integration of businesses between Singapore and Poland is facilitated by relevant legal instruments that enhance cooperation. As a member of the European Union, Poland shares numerous international agreements with Singapore, including the EU-Singapore Free Trade Agreement, EU-Singapore Investment Protection Agreement, and EU-Singapore Partnership and Cooperation Agreement. Among these agreements, the Poland-Singapore Double Tax Treaty stands out as a vital mechanism for fostering cooperation in the tax domain, which will be the focus of our discussion in this article.

understanding key points of Singapore-Poland DTA

What is the Poland-Singapore Double Tax Treaty?

The Poland-Singapore Double Tax Treaty (DTA) serves to prevent double taxation and curb tax evasion between the two nations. Signed on November 4, 2012, and entering into force on February 6, 2014, this treaty provides clear guidelines for the taxation of various income streams, such as dividends, interest, royalties, and capital gains.

Its primary aim is to ensure that income is taxed in only one of the signatory countries, thus fostering fairness and efficiency in cross-border transactions. Additionally, the DTA incorporates robust anti-abuse measures to prevent its misuse for tax avoidance purposes.

Access to full text: The complete text of the Poland-Singapore DTA is available at IRAS website.

We Have Helped Thousands Incorporate In Singapore

Contact Our Experts

Scope of Poland-Singapore DTAA

The DTA applies to residents of both contracting states, encompassing legal entities and individuals residing in Poland, Singapore, or both countries.

Key Provisions of the Poland-Singapore DTA

Residency-Based Taxation

Under the Poland-Singapore Double Tax Treaty, taxation is based on residency, with taxes levied only by the country of residence rather than the country from which income originates.

Taxation of Income

Avoidance of Double Taxation under Singapore-Poland DTA

The main goal of any DTA is to reduce the tax burden on individuals and companies by eliminating the possibility of being taxed twice on the same income. The basic instrument established by the DTA for this purpose is the foreign tax credit. It allows for a tax credit in the country of residence if the income was taxed in the source country.

The foreign tax credit is a tax break that offsets income tax paid to the other country. For example, if you paid S$1000 of Polish taxes and you are liable to pay S$1500 on that same income in Singapore, your tax credit will be S$1000 and you will have to pay only S$500 in Singapore.

Poland-Singapore DTA - At a Glance

The Poland-Singapore double taxation avoidance agreement specifically states where different types of income are subject to tax. Essentially, the place of taxation determines the rate of tax applicable to each type of income as follows:

Type of income or payment

Where it is taxed

Income from immovable property

Taxed in the state where the property is situated

Profits from business

Taxed in the state where a company is resident.

Profits from shipping and air transport

Taxed in the state where a company is managed and controlled


May be taxed in the state where the recipient resides and in the state where dividends arise


May be taxed in the state where the recipient resides and in the state where interest arises


May be taxed in the state where the recipient resides and in the state where royalties arise

Capital gains

Taxed in the state where the seller is a resident

Professional services

Taxed in the state where the person is a resident and in certain cases in the state where the work is performed

Salaries and wages

Taxed in the worker’s state of residency and in certain cases in the state where the work is performed

Directors’ fees

Taxed in the state where the company (paying the directors’ fees) resides

Income of artists and sportspersons

Taxed in the state where activities are performed


Taxed in the state where the recipient resides

Government payments

Taxed in the state that pays the remuneration

Payments to students and trainees

Tax exempted

Permanent Establishment profits

Taxed in the state where it carries on business activities, but only in the amount attributable to that PE

Protect Your Income From Excessive Taxation

To effectively grow your business and maximize profits, it’s essential to understand the tax benefits available to you and your business. If you’re considering registering your company in Singapore, CorporateServices.com can help you navigate the process by helping select the correct corporate structure that will minimize your taxes while fully complying with all government laws, regulations, and DTAAs.
Get Started
Explore our Services


In conclusion, the Poland-Singapore Double Tax Treaty serves as a cornerstone in fostering economic cooperation and facilitating cross-border transactions between the two nations. By providing clarity on tax obligations, eliminating double taxation, and incorporating anti-abuse measures, this treaty creates a conducive environment for individuals and businesses to engage in bilateral activities with confidence and efficiency.

For entrepreneurs looking to expand their presence in Singapore, leveraging the expertise of professional service providers can streamline the process of company incorporation and ensure compliance with tax regulations. CorporateServices.com offers comprehensive Singapore company incorporation services, guiding clients through the regulatory landscape and ensuring adherence to local laws. With our expertise and tailored solutions, we can facilitate a smooth transition for businesses venturing into the Singapore market. For assistance with company incorporation services in Singapore, please do not hesitate to contact us.

Related Articles


Is Singapore the Right Place to Incorporate?

Numerous international organizations have consistently ranked Singapore very highly for the ease of doing business. Learn about the key benefits of setting up a Singapore company.

How to Register a New Company in Singapore

Incorporating a Singapore company is fast, easy, and free from unnecessary red-tape. Find out the requirements and procedure to register a private limited company in Singapore.

Singapore's Tax System and Types of Taxes

This article is an overview of Singapore’s tax system, current tax rates, and benefits of Singapore’s tax regulations for companies and individuals.