METHODS OF PREVENTING DOUBLE TAXATION IN THE AREA OF PERSONAL INCOME TAXATION INCLUDING THE RULES OF FREE MOVEMENT OF WORKERS
Journal Title: International Journal of Legal Studies ( IJOLS ) - Year 2019, Vol 5, Issue 1
Abstract
In European Union countries, income from hired labor is taxed in the country in which the work is done. Regardless of this, taxpayers who are subject to unlimited tax liability in Poland are obliged to settle this income also in Poland. To avoid double taxation of the same income, double taxation conventions are concluded between countries. They provide for two methods of avoiding double taxation: the exclusion method with progression and the method of proportional deduction (credit, tax credit). Certain double taxation conven-tions concluded by Poland, exempt from taxation in Poland the income from hired work performed in another country (taxed in the country in which the work was performed). These incomes are taken into account in the annual settlement submitted in Poland only when the taxpayer also achieved income subject to taxation in Poland on general principles. Income from work abroad, exempted from taxation under a bilateral agreement, is then used to determine the interest rate, which will then be applied to the taxation of income in Poland.<br/><br/>In European Union countries, income from hired labor is taxed in the country in which the work is done. Regardless of this, taxpayers who are subject to unlimited tax liability in Poland are obliged to settle this income also in Poland. To avoid double taxation of the same income, double taxation conventions are concluded between countries. They provide for two methods of avoiding double taxation: the exclusion method with progression and the method of propor- tional deduction (credit, tax credit). Certain double taxation conventions concluded by Poland, exempt from taxation in Poland the income from hired work performed in another country (taxed in the country in which the work was performed). These incomes are taken into account in the annual settlement submitted in Poland only when the taxpayer also achieved income subject to taxation in Poland on general principles. Income from work abroad, exempted from taxation under a bilateral agreement, is then used to determine the interest rate, which will then be applied to the taxation of income in Poland.<br/><br/>
Authors and Affiliations
Krzysztof Żuk
Keywords
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- EP ID EP640773
- DOI 10.5604/01.3001.0013.3245
- Views 98
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