Poland's president on Wednesday signed into law a deal abolishing double
taxation for the growing number of Poles working in Britain, a move that
eases a financial burden that has discouraged some from returning home.
The agreement, which was struck in July between the Polish and British
finance ministries, will free Poles working in the U.K. from having to
pay both British and Polish taxes, President Lech Kaczynski's office
said in a statement.
Britain's Parliament will vote on the tax change in April.
Britain was one of a handful of EU countries to completely open its
labor market to workers from Poland and other ex-communist countries
that joined the bloc in 2004. Since then, hundreds of thousands of Poles
have registered to work there.
Amid the large-scale emigration, Poland has faced fears of losing its
best-skilled citizens. There are hopes that many of those who have left
will return to Poland with improved job and language skills.
But the rules on double taxation were believed to be pushing Poles to do
just the opposite — break all ties with their homeland to avoid paying
additional taxes in Poland on income already taxed in Britain.