Constraints on business disappear – a unique bill signed by the President

Business activity run without impractical inconveniences and saving as much as 230 million PLN just after six months from entering into force of the new provisions – these are the goals of the new bill singed by President Andrzej Duda – the act on amendments to some acts with the purpose of improving the entrepreneurs’ legal environment. The modifications touch on as much as 18 other legal acts, such as the act on construction law, labour law, financial law or the act on the freedom of economic activity. It is a part of the plan to carry out a special bundle of facilitations for entrepreneurs, the so-called “100 changes for companies”.

Authors of the amendments are very glad that a certainty of law clause will be introduces along with its implementation, thanks to which entrepreneurs will have certainty that law will not apply retroactively. Important guarantees protecting the interests of entrepreneurs during compliance check proceedings appear as well. An example of this type of protection is the obligation to plan inquiry proceedings on each occasion and the right to file a complaint to court for protracting them.

Such protection measures are introduced due to concerns about the risk of facing the negative consequences of the necessity to change the interpretations of regulation in the situation when the provisions themselves are not amended. In practice, this means the entrepreneurs who respected the dominant line of interpretation will be under the same protection as the ones who decided to apply for individual interpretation of law. This will in turn free them from the burden in the form of administrative and financial sanctions and the obligation of paying penalties in the case of changes with regard to legal interpretation of regulations.

Another innovation is the institution of tax guidance. According to the announcements, the Minister competent for financial matters will issue a set of practical guidelines to tax regulations that will constitute a clear and short instruction that is to help entrepreneurs to both understand the rules of the tax system and also to meet tax obligations in a more conscious way.

A lot of positive changes are planned. Special attention should be drawn to the fact that the annual threshold of net revenue (from sales of goods, products and financial operations) up to which PIT taxpayers may maintain revenue and expense ledger, will be increased from 1.2 to 2 million EUR. A maximum annual threshold of revenue that allow tax business activity in the form of flat-rate tax on registered income will increase as well – from 150 to 250 thousand EUR.

Most of the provisions of the act come into effect from 1 January 2017.

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.