“Treaty relief” refers to the benefits available under a double tax treaty. In practice, this means that, thanks to the relevant international tax treaty, a cross-border payment may be treated more favourably than under Polish domestic tax rules alone.
In the area of withholding tax in Poland, treaty relief most commonly means:
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applying a reduced withholding tax rate,
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applying a withholding tax exemption,
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or otherwise limiting Poland’s right to tax a given payment under the applicable treaty.
On a WHT service page, the phrase “treaty relief” should usually be understood as:
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applying a treaty rate,
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applying an exemption under a double tax treaty,
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benefiting from the provisions of a double tax treaty.
While the Polish phrase corresponding to “treaty preferences” may be technically correct, the clearest English wording for business and website use is usually:
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benefits under a double tax treaty,
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application of a treaty rate,
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application of an exemption or reduced rate under a double tax treaty.
In simple terms, treaty relief means the tax benefits available under a double tax treaty, most often in the form of a lower withholding tax rate or no withholding tax at all.
