Government Adopting Further Changes to the Excise Tax

The Council of Ministers adopted the draft act amending the act on excise duty and certain other acts, submitted by the Minister of Finance. The changes are supposed to make life easier for entrepreneurs.

What are Major Changes in Excise Tax:

On October 25, the Council of Ministers adopted a draft amendment to the Excise Tax Act. A number of solutions have been adopted to make life easier for entrepreneurs but also to lower energy prices. “The draft clarifies the provisions on excise duty. The new solutions will reduce administrative obligations and make it easier for entrepreneurs to run a business. There will also be simplifications for entities that produce electricity from renewable energy sources, ” reads the communiqué after the meeting of the Council of Ministers.

Interestingly, the solutions adopted today include provisions that indicate the development of both the desire to ease the producers of energy from renewable sources and people who decide to buy hybrid cars. This means a shift towards more ecological solutions.

There will be simplifications for entities producing electricity from renewable energy sources (RES). Administrative obligations for entities that consume electricity exempt from excise duty, produced in generators with a total capacity not exceeding 1 MW, will be reduced. This solution will also apply to local government units.

Until December 31, 2029, the excise tax exemption will be extended for plug-in hybrid passenger cars with an internal combustion engine capacity of no more than 2,000 cm³. Until now, this exemption was valid until the end 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.