According to the Latest DGP Release, Tax Limitation Period will No Longer be Suspended

The initiation of disciplinary and fiscal proceedings will no longer stop the tax limitation period – it results from the draft of new regulations received by Dziennik Gazeta Prawna.

According to the scheme published by Dziennik Gazeta Prawna, from June 2023, initiating proceedings for a tax crime or misdemeanor will no longer suspend the tax limitation period. Thus, as DGP reports, the common practice of tax offices, which started such proceedings just before the limitation period, will end.

The Basics of Tax Limitation:

According to the Daily, the current regulation, which suspends the statute of limitations when initiating the proceedings, is inconsistent with the Constitution. However, it is binding because the Constitutional Tribunal has never officially stated it. Courts adjudicated in this way, relying on other judgments of the Constitutional Tribunal.
The draft law amending the tax ordinance is currently at the stage of internal consultations and has not yet been officially published.

The draft act includes not only provisions on tax limitation. The Ministry of Finance also intends changes in ​​the refund of overpaid VAT and excise duty. According to the project, if the financial burden has already been borne by the consumer paying the higher price for the service or goods, the overpayment will not be refunded. However, it is the office that will have to prove that the entrepreneur has not suffered any financial penalty.

The rights to block the company’s accounts will also change. Today, the National Revenue Administration head may request a blockade of settlement accounts, VAT accounts, SKOK member’s accounts and term deposits. Following the changes to such a blockade, savings and checking accounts and term savings deposit accounts would also be applied.

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.