Post-Election Government Reshuffle

A substantial reorganization of the government of Mateusz Morawiecki took place a week after the elections to the European Parliament. Numerous government officials took part in the elections as candidates and after a successful run for office decided to leave Poland for Brussels and continue their careers as EU MPs.

Selected Ministry Members After The Elections:

The new Ministers received their nominations from the hands of the President of Poland Andrzej Duda on Monday. All in all, Poland has now six new Ministers: Elżbieta Witek (Ministry of the Interior and Administration), Marian Banaś (Ministry of Finance), Bożena Borys-Szopa (Ministry of Family, Labour and Social Policy), Dariusz Piontkowski (Minister of National Education), Michał Dworczyk (Member of the Council of Ministers) and Michał Woś (Member of the Council of Ministers) and one new Deputy Prime Minister, Jacek Sasin (Member of the Council of Ministers).

Marian Banaś from now on will head the Ministry of Finances, replacing Minister Teresa Czerwińska. Ms Czerwińska is the sole government official who did not leave office due to European Parliament elections. Her dismissal is not a surprise, though. It was not a secret that she was in disagreement with the Prime Minister about the plans for heavy social policy transfers that were announced during the recent election campaign. It was already announced that the former Minister will work for the National Bank of Poland.

The new Minister of Finance is a former advisor in the Ministry of the Interior. During his career, he also worked for the Supreme Audit Office and Customs Service. He is well known in the Ministry of Finance as he used to be appointed there as an undersecretary of state. Business experts praise the nomination. At the same time, they emphasize that the new official will be under a lot of pressure to lessen budgetary discipline. Even though the Polish economy is going strong, the new Minister needs to get ready for a projected slowdown in GDP growth and encourage investment in the private sector.

What This Means for Businesses in Poland

Tax policy changes in Poland have direct implications for both domestic and foreign-owned businesses. Companies operating in Poland must stay informed about regulatory developments to optimize their tax position and maintain compliance. The Polish tax system includes CIT (19% standard, 9% for small taxpayers), VAT (23% standard rate with reduced rates of 8% and 5%), and various sector-specific levies.

For international entrepreneurs and investors, understanding the Polish tax landscape is essential for business planning. Poland offers several attractive incentives including the Polish Investment Zone (up to 15 years of CIT exemption), R&D tax relief (up to 200% deduction), and the IP Box regime (5% effective CIT rate on qualified intellectual property income). Professional tax advisory can help identify the most beneficial structure for your specific situation.

The interplay between Polish domestic tax law and international tax treaties is particularly important for foreign-owned entities. Transfer pricing regulations, withholding tax provisions, and anti-avoidance rules (GAAR) require careful navigation to ensure both compliance and optimization.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our tax advisory services in Poland, or contact us for a free consultation.