Poland and Germany negotiate agreement to reduce double-tax burden in SSEs

Poland and Germany are discussing how businesses investing in special economic zones (SSE) can avoid paying tax twice. Both want to introduce a new agreement on bilateral trade to replace the 1972 one. Germany wants revenue earned by German companies operating in SSEs to be taxed in Germany and not in Poland, as happens now. They also want to lower the limit of capital which can be deducted from German taxes. Germany has a preferential 5% capital-gains tax rate. A 5% tax rate is also planned for interest rates on bank loans paid by Polish companies to Germany and vice versa. (Prawo i Gospodarka, June 17-18, page 1, 6) M.M.