Ministry Prepares Favourable Law for Business

The Ministry of Entrepreneurship and Technology announced a law for businesses that is working on a set of legal amendments that will benefit business owners in Poland. Soon, Polish companies will be able to take the advantage of 70 new regulations that are going to make doing business in Poland easier.

This is the latest step in a series of regulatory modifications that the government introduces in order to benefit Polish entrepreneurs and enhance the law for business environment in Poland, which include 100 Changes for Companies, Small and Medium Enterprises Package and Constitution for Business. The main goal of Favourable Law is limiting bureaucracy, as it is time and money consuming and prohibits innovation. All in all, Package provides amendments to 74 legal acts.

The Importance of Law for Business:

“Taking the previous packages into consideration, we are talking about hundreds of facilitations and savings for Polish entrepreneurs in the three years of our government” – said Minister Jadwiga Emilewicz. She also noted the goal is to make Polish law less restrictive and inconsequential. The new amendments were designed with micro, small and medium-sized enterprises in mind.

The provisions cover a broad area. Among other things, Polish government plans to extend the time limit for VAT settlement in import trade. The deadline for settling VAT will be the 25^th day of the month following a given month, i.e. the general rule will replace the 10 days limit which is in force today. This solution is to improve the competitiveness of Polish ports.

A truly ground-breaking development is allowing micro, small and medium entrepreneurs to make errors. For 12 months after starting the company, the law for business will make owners not receive penalty for unintentionally breaching the law (on condition they remedy their mistake within a suitable period of time).

The Favourable Law Package will be introduced by means of an act on amendments to other acts for the purpose of limiting regulatory burden. It is currently at the consultations stage which may take up to a month.

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 VAT and tax advisory, or contact us for a free consultation.