National Fiscal Administration Tougher on Entrepreneurs

The Polish Ministry of Finance and National Fiscal Administration are not particularly known for going easy on Polish business owners. More compliance obligations, tougher penalties and stricter stance on tax optimization – we have seen all these in the recent months and years. This government is eager to increase fiscal revenue and crunch down tax evasion and other fiscal crimes. Their ideas on finding ways to tighten fiscal law seem to never end. “Gazeta Prawna” business daily has just revealed government plans for new fiscal administration law provisions that put shivers down every taxpayer’s spine.

This time, fiscal authorities are focusing on tax inspections. According to current provisions, if inspectors find out breaches in compliance, an enterprise may first amend the violations and fulfill and unmet tax obligations, and then file a court case against the authorities. This way, the company has a clean slate does not have to pay any interest and avoids further penalties.

The Ministry of Finance wants to stop this practice. In line with the regulations that are currently being drafted, a taxpayer will not be able to comply with post-inspection recommendations before applying against tax inspectors’ decisions. In other words, fulfilling the recommendations will mean the entrepreneur accepts the decision of the fiscal administration authorities. If this is the case, they will not be able to take the matter to court.

After the news broke, media and economic experts called this solution ruthless or even stated that the authorities were in fact blackmailing Polish companies. If an entrepreneur decides to go to court, they are risking being awarded penalties and additional interest. It appears the Ministry of Finance wants to dissuade businesses from questioning the results of tax inspections.

National Fiscal Administration argues that taxpayers will still have the right to submit corrections of tax returns within 14 days of the onset of an inspection. Moreover, the new regulations will apply to customs and tax inspections (carried out by NFA) and not regular tax inspections carried out by local tax offices.

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.