Non-Residents Bond Sales Tax Free

Since 9 July foreign non-resident investors, both corporate and individual, have been exempt from Polish taxation on gains derived from the sale, exchange, or other disposal of ownership rights of securities issued under the 1997 Budget Act.

This means that even where there is no applicable double taxation avoidance treaty, or no capital gains tax article in such a treaty, foreign non-resident investors will be able to invest in these issues without capital gains tax issues arising.

The most important of these securities are:

• 1 Year Indexed State Loan Bond
• 3 Year Variable Rate State Loan Bond
• Fixed Rate State Loan Bond
• K & L Series State Loan Bond denominated in US $

Tax laws and practise are constantly being revised and, whilst every effort is made to ensure that the information in this tax newsletter is accurate and timely, no decision should be taken on the basis of the information herein without first consulting with KPMG Polska.

Should you have any questions in relation to the above issues, please contact:

Oliver Sinton
KPMG Polska
LIM Center - Marriott Hotel - IX floor
Al. Jerozolimskie 65/79
00-697 Warsaw, Poland
Tel: +48 (22) 630 7236
Fax: +48 (22) 630 6355