Polish Deal Modification – Who Will Benefit and What is Missing

The government started to sort out the fiscal confusion caused by the introduction of the Polish Deal or Order. The Ministry of Finance revealed a package of further planned changes to the tax system. Experts refer to the Polish Order and explain the sense of the proposed corrections.

The key change is to eliminate the so-called allowances for the middle class and a reduction in the rate of the first tax threshold from 17 to 12%. The government claims that the changes announced on many levels stem from the need to combat rising inflation and an increasingly pessimistic macroeconomic prognosis.

The Importance of the Polish Deal:

According to some experts, most of the adjustments should be assessed in a positive manner. After all, they have their source in criticism of many solutions introduced by the Polish Order, and some of them were so bad or complicated that they could not be fixed and it was decided to leave them altogether or possibly replace them with new mechanisms.

Entrepreneurs paying taxes on the basis of a tax card were offered the possibility of reducing the tax paid by 19%. As a result, entrepreneurs settling accounts according to the tax card, access to which has already been closed to new taxpayers, should gain about PLN 50 per month.

Most experts think, that it will have a positive impact on the tax settlements of entrepreneurs. Certainly, however, one cannot speak of another revolution or a reversal of the effects of the Polish Deal. For most entrepreneurs, this is at most a minor correction, the scale of which will be a fraction of the increases in the Polish Deal.

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.