The Dispute between Poland and Czechia over the Turow Mine

The Polish side received a proposal from the Czechs for the content of the disputed article on Turow Mine. According to Aleksander Brzózka, Spokesman for the Ministry of Climate and the Environment, they are analyzing it and will discuss it with the Czech partners.

The Spokesman of the Ministry emphasized that he would not like to talk about the details of these solutions for now. “We agreed with the Czech government that at this stage of the discussion we want to talk directly and not through the media,” he added.

What is the Latest Information About Turow Mine:

On Monday, Brzózka indicated that the Czech side is working on its proposal of the disputed article of the contract on the Turow mine.

Last Friday, after the resumption of talks with the Czech Republic on Turow in Prague, the Minister of Climate and Environment, Anna Moskwa, told journalists that the agreement still needs time to be concluded.

Last week’s meeting was the 18th round of the negotiations on Turow mine, which have been taking place since June this year. On September 30, the consultations were suspended after no agreement was reached on the duration of the intergovernmental agreement.

The Turow mine is owned by PGE Górnictwo i Energetyka Konwencjonalna, part of PGE Polska Grupa Energetyczna. In 2020, the Minister of Climate and Environment, Michał Kurtyka, extended the license for lignite mining in Turów for another six years, until 2026.

The Czech Republic brought a complaint to the Court of Justice of the EU (CJEU) against Poland regarding the Turow mine in February this year. They also applied for an interim order for the suspension of mining operations.

The complaint was connected to the expansion of the mine, which – as Prague claims – threatens the access to water of the inhabitants of the surrounding communes. They also complain about noise and dust from lignite mining.

In May, the CJEU, in response to a request from the Czech Republic, ordered the immediate suspension of coal mining in Turów. The Polish government announced that the mine would continue to operate and started discussions with the Czech. On September 20, the European Court decided that Poland had to pay the European Commission a fine of PLN 500,000 per day for not implementing interim measures and not stopping the extraction of lignite in the mine.

On Tuesday, a hearing was held in front of the CJEU in Luxembourg regarding the Czech Republic’s complaint regarding the activities of the Turow mine. According to the Ministry of Culture and National Heritage, the sentence should be passed in the first quarter of 2022.

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.