The Government Approves New Tax Ordinance

The government of Prime Minister Mateusz Morawiecki officially approved the draft of the bill that is to become the new Tax Ordinance. The provisions stipulated in the act legally regulate all aspects of taxation in Poland. It is clearly one of the most important official documents and certainly the most significant one from the point of view of an entrepreneur.

The important step on the legislative path of the new Tax Ordinance Act was announced by the Minister of Finance Teresa Czerwińska. When working on the bill draft, government experts wanted to strengthen the position of the taxpayer appearing before fiscal authorities. The new provisions concern such matters as mediation and consultations with regard to the tax effects of business transactions.

What are the Major Points in the New Tax Ordinance:

New solutions will be introduced, such as a tax agreement (regarding complex disputes between taxpayers and the authorities) and a Cooperation Programme through which tax offices will receive more information about the taxpayer’s plans and operations and the taxpayer will ensure the legality of their actions. Moreover, officials want to move towards more developed electronic communication.

This is not the only new development coming from the Ministry of Finance. During the same press conference, Minister Czerwińska announced the approval of a bill introducing the Taxpayers’ Ombudsman. The body will be, as the lawmakers informed, “an independent professional to whom the taxpayer will be able to turn for help when contacting fiscal administration”. However, the Ombudsman will only provide assistance to microentrepreneurs and individuals.

Revamping the Tax Ordinance Act is a significant task, as it is one of the most complex collections of legal provisions in Polish legislation. The decision to provide substantial amendments was made five years ago. The new regulations are planned to come into effect on 01 January. The act on Taxpayer’s Ombudsman is to become effective one year earlier, on 01 January.

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.