First Draft Of The New Tax Ordinance Revealed

The Codification Committee finished work on a new tax ordinance bill. The document has recently been published on the government website. Preparing the draft of the new act regulating tax law in Poland is a massive task and took Committee members three long years. Tax ordinance is one of the most important legal acts shaping economic reality in Poland. It governs all things related to taxation: levies, tariffs, rules of tax collection, fiscal obligations and penalties for non-compliance, etc.

The new tax ordinance which is currently in force is from 1997. In the twenty years of its existence, it has been amended on numerous accounts. Tax experts and entrepreneurs alike have been saying for a long time that Polish fiscal law is complicated, difficult to follow and understand, keeps changing constantly and that tax regulations in Poland should undergo a reform. Work on a new tax ordinance began three years ago and was initiated by the government of Ewa Kopacz.

The draft of the new bill consists of over 250 pages and is accompanied by 40 regulations. The new legal provisions will now be discussed by the Ministry of Finance officials, tax experts, and the public. As for now, the date the new law could come into effect is January 2019.

How is the new tax ordinance going to be different from the fiscal regulations that are currently in force? Lawmakers want to improve the relations between taxpayers and tax officials and make Polish companies approach fiscal authorities with more trust and confidence than today. Taxpayers’ rights and obligations are to be clearly stated. Another aim is to decrease the cost of tax collection. Regulations with regard to granting power of attorney are to change as well.

Considering the impact the new tax ordinance act has on the everyday activity of all companies in Poland, the reform of the fiscal law is one of the biggest challenges ahead of the government.

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.