The personal income tax and corporate income tax regulations provide that the credit method is used to avoid double taxation, unless double taxation treaties specify differently. Poland has signed Double Taxation Avoidance Treaties with over 80 countries. Most of the treaties signed by Poland are based on the 1977 OECD Model Conventions. The above mentioned Convention applies to persons who are residents of one of the both Contracting States. This Convention applies to taxes on income and on capital imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied.
Residents have unlimited tax liability in Poland, which means that they are subject to tax on their worldwide income. Non-residents have limited tax liability to Poland, which means that they are liable to pay tax only on income from work performed in Poland, and on other Polish-source income.
Remuneration obtained by non-residents as members of boards of directors, supervisory boards or other decision-making bodies of legal entities is taxed at a fixed withholding polish tax rate of 20%, provided that they perform their duties under an appointment to the management board and not under a contract of employment concluded with a company registered in Poland.