Statutory rate without a valid treaty claim: 30%.
Rates on investment and other income
Treaty in effect generally from Jan. 1, 1974. Protocols in effect from: none listed. IRS country code PL.
| Income | 1042-S code | Treaty rate | Article |
|---|---|---|---|
| Interest paid by U.S. obligors, general | 01 | 0% (exempt) | 12(1) |
| Dividends paid by U.S. corporations, general | 06 | 15% | 11(2) |
| Dividends qualifying for the direct dividend rate | 07 | 5% | 11(2) |
| Royalties: industrial, commercial or scientific equipment | 10 | n/au | 13(2) |
| Royalties: know-how and other industrial royalties | 10 | 10% | 13(2) |
| Royalties: patents | 10 | 10% | 13(2) |
| Royalties: motion picture and television copyrights | 11 | 10% | 13(2) |
| Royalties: copyrights (including software, unless the treaty says otherwise) | 12 | 10% | 13(2) |
| Pensions and annuities | 15 | 30% | None |
| U.S. Social Security benefits (applies to 85% of the payment) | 15 | 30% | None |
"n/a" means the payment type is not covered by the royalty article: equipment leasing is business profits (no withholding without a permanent establishment) or other income. Superscript letters are the IRS's own conditions, listed at the end of this page.
Pay for personal services performed in the United States
Each row is an exemption the treaty gives, with the limits the IRS lists. All conditions in a row must be met; if any is not, the pay is withheld on at 30% (contractors) or under the wage rules (employees). Services performed entirely outside the United States are foreign-source and need no treaty claim.
| Code | Purpose | Maximum presence in U.S. | Required employer or payer | Maximum amount | Article |
|---|---|---|---|---|---|
| 16 | Scholarship or fellowship grant515 | 5 years | Any U.S. or foreign resident | No limit | 18(1) |
| 17 | Independent personal services | 182 days | Any contractor | No limit | 15 |
| 18 | Dependent personal services1757 | 182 days | Any foreign resident | No limit | 16 |
| 19 | Teaching441 | 2 years | U.S. educational institution | No limit | 17 |
| 20 | Remittances or allowances | 5 years | Any foreign resident | No limit | 18(1) |
| 20 | Compensation during training | 5 years | U.S. or any foreign resident | $2,000 p.a. | 18(1) |
| 20 | Compensation while gaining experience2 | 1 year | Polish resident | $5,000 | 18(2) |
| 20 | Compensation while under U.S. Government program | 1 year | U.S. Government or its contractor | $10,000 | 18(3) |
How the payee claims these rates
- Individuals claim a reduced rate on interest, dividends, royalties or pensions in Part II of Form W-8BEN: treaty country, article, rate and any conditions. Most claims need a U.S. TIN or a foreign TIN on the form.
- Entities claim in Part III of Form W-8BEN-E, which also asks which limitation-on-benefits test the entity meets (this treaty has no limitation-on-benefits article).
- Pay for services performed in the United States by an individual is exempted on Form 8233, not the W-8BEN, one form per tax year and per payer.
- The payer reports the payment on Form 1042-S with the income code shown above and chapter 3 exemption code 04 (exempt or reduced withholding under a tax treaty). From 2026 an exemption code is required whenever less than 30% is withheld.
The rate in a table is the most the United States may withhold under the treaty, not an entitlement. The payee has to be a resident of Poland under the treaty, the beneficial owner of the income, and (for entities) meet the limitation-on-benefits article, and the payer has to hold a valid certificate before the payment. The IRS tables are a summary: check the article itself when the amount is material.
Questions payers ask
What is the U.S. withholding rate on dividends paid to a resident of Poland?
15% on dividends generally and 5% on dividends qualifying for the direct dividend rate, under Article 11(2), if the shareholder documents the claim on a W-8BEN or W-8BEN-E. Without a valid claim the rate is 30%.
What is the U.S. withholding rate on royalties paid to a resident of Poland?
10% on copyright and software royalties (income code 12), 10% on patent royalties and 10% on film and television royalties, under Article 13(2).
What is the U.S. withholding rate on interest paid to a resident of Poland?
0% under Article 12(1), before considering the Code's own exemptions for portfolio interest and bank deposit interest.
Is a contractor from Poland working in the United States exempt from U.S. withholding?
Under Article 15, pay for independent personal services is exempt if the contractor is present in the United States for no more than 182 days, subject to the conditions in the article. An individual claims the exemption on Form 8233; without it, withhold 30%.
Do we withhold on a contractor from Poland who works only outside the United States?
No. Pay for services performed entirely outside the United States is foreign-source income: no withholding and no Form 1042-S. Keep the contractor's W-8BEN or W-8BEN-E on file.
The IRS notes behind the figures
Notes to the rates (IRS Table 1)
- u If enterprise earns income from leasing of equipment in the conduct of a trade or business, covered by Business Profits article (net tax). If passive income from the leasing of equipment, and not in Royalty article, covered by the Other Income article, if any. In Pakistan payment for TV broadcasting rights are covered by the Royalty article but not rental income from motion picture films.
Notes to the services table (IRS Table 2)
- 2 Applies only if training or experience is received from a person other than alien's employer.
- 4 Does not apply to compensation for research work primarily for private benefit.
- 5 Grant must be from a nonprofit organization. In many cases, the exemption also applies to amounts from either the U.S. or foreign government. For Indonesia and the Netherlands, the exemption also applies if the amount is awarded under a technical assistance program entered into by the United States or the foreign government, or its political subdivisions or local authorities.
- 15 Does not apply to payments from the National Institutes of Health under its Visiting Associate Program and Visiting Scientist Program.
- 17 The exemption does not apply if the employee's compensation is borne by a permanent establishment (or in some cases a fixed base) that the employer has in the United States.
- 41 Exemption does not apply if, during the immediately preceding period, the individual claimed the benefits of Article 18(1).
- 57 Remuneration for employment exercised aboard a ship or aircraft operated in international traffic by a resident of a contracting State may be taxed in that State. Canada may tax the income from employment if the income is derived by a resident of Canada and the ship or aircraft is operated by a resident of Canada. If operated by a Luxembourg resident and Luxembourg fails to tax the income, such income shall be taxed in the State of which the employee is a resident. The income may be taxed in Tunisia only if the ship or aircraft is operated by an enterprise that is managed and controlled in Tunisia.
Transcribed from the IRS Tax Treaty Tables. Treaty texts and technical explanations: United States income tax treaties, A to Z.
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