Tax Changes For 1997

1. Double Tax Treaties

Certain new treaties for the avoidance of double taxation have come into force between Poland and the following countries:

• the Grand Duchy of Luxembourg,
• the Kingdom of Morocco.

Please note that certain provisions of the aforementioned treaties are effective from 1 January 1997.

2. Second Economic Zone open

The Special Economic Zone in Suwalki (N.E. Poland) opened on 30 November. 12 companies currently have licences to operate in the zone, which allows for a 10 year exemption from Corporate Income Tax as well as a 50% exemption in the following 10 years where certain levels of investment are reached.

3. Changes in Personal Income Tax

The most important changes to the Act of 26 July 1991 (apart from changes in respect of 'building' deductions):