Draft amendment to the Tax Ordinance - important changes for entrepreneurs

How will these changes impact entrepreneurs’ activities?

According to the legislator, the new regulations aim to create a friendly administration, increase the predictability of tax law and provide companies and other entities with sufficient time to implement the upcoming changes. The proposed solutions are part of the government's plan "Poland. A Year of Breakthrough", within the pillar "Support for Business and Deregulation", the key assumptions of which are the elimination of bureaucracy, reducing the costs of doing business and making the tax system more understandable.

Statute of limitations, payments, vacatio legis: what are the key changes to the Tax Ordinance?

Draft amendment to the Tax Ordinance published on 28 March this year (covering 52 pages of the draft and 128 pages of justification, with dominant changes in the scope of MDR), the list of legislative and programmatic works of the Council of Ministers noted two more drafts of the act amending the act – Tax Ordinance (UDER2 and UDER3). Below we present a list of the most important changes.

6-month vacatio legis period

The subject of the proposal is to establish the principle of a minimum 6-month period of vacatio legis in relation to draft tax laws submitted to the Sejm, the implementation of which is associated with an increase in burdens on taxpayers and other tax law entities.

The draft amendment to the Tax Ordinance concerning vacatio legis was published on April 14 (link).

Doubts resolved in favour of the taxpayer

A novelty is the extension of the in dubio pro tributario principle to situations where, after exhaustive evidence proceedings, unresolvable doubts remain as to the factual situation. So far, there has been no agreement in the case law as to the possibility of extending the discussed principle to doubts concerning the factual situation. The drafters therefore propose to allow for interpretations in favour of the taxpayer also in the case of ambiguous factual situations. This principle, added to the general rules of procedure, constitutes an additional safeguard for the interests of the parties, prohibiting unfavourable presumptions in the case of undetermined facts.

Changes in reporting MDR tax schemes

• Exclusion of tax schemes from individual KIS interpretations
• Association of some MDR hallmarks with the main benefit criterion
• Restriction of MDR reporting in case of data transfer under TPR or information for non-residents (IFTR)
• Possibility of issuing regulations excluding certain national arrangements from MDR reporting or exempting certain groups of entities
• Simplification of reporting mechanisms, elimination of MDR-2, adjustment to the DAC6 directive and the CJEU judgment on professional secrecy
• Changes to the data provided in MDR-1 and MDR-4
• Possibility to supplement MDR information before and after issuing NSP
• Introduction of the annual obligation to provide MDR-3 information with the possibility of estimating benefits
• Enabling the signing of MDR-3 by a proxy
• Abolition of the obligation to have an internal MDR procedure
• Changes to sanctions for failure to comply with MDR obligations (reduction of fines from 720 to 240 daily rates)

The entire "MDR glossary" (Article 86a of the Tax Ordinance) is to be changed, which in practice may lead to new doubts and disputes with tax authorities. The exclusion of MDR provisions from the scope of regulations that can be explained in the framework of an individual interpretation should be considered extremely disadvantageous.

Possibility of tax write-off before the due date

Taxpayers will be able to apply for a tax write-off (e.g. real estate, agricultural, forestry, VAT, excise) before the due date, without having to wait for arrears to arise. The application can be submitted after receiving the decision (for taxes arising ex nunc) or after filing the declaration.

Abolition of the obligation to apply for overpayment when correcting the tax return

In the case of an overpayment resulting from a late correction of the declaration, the taxpayer will no longer have to submit an additional application for its confirmation. The date of initiation of the proceedings in this case will automatically be the date of submission of the correction, which will streamline the process and reduce formalities.

At the same time, the ministry proposes that if a taxpayer corrects a declaration less than 12 months before the expiry of the limitation period, this period should be extended by 12 months.

Facilitating powers of attorney

Companies will be able to submit ZAW-NR notifications more conveniently (on VAT payments outside the white list) electronically, thanks to the possibility of signing by a proxy. Moreover, people from outside the company, summoned by the office, will be able to appoint a general proxy to represent their interests, in certain situations (e.g. providing explanations).

Possibility of remote questioning in tax proceedings

The new regulations will enable the National Revenue Administration authorities to remotely question parties and witnesses in tax proceedings using electronic means of communication.

Increase in the amount of the declaration correction by the office as part of the verification activities

Due to inflation, the limit for ex officio correction of declarations by the tax authority during verification activities has been increased from PLN 5,000 to PLN 10,000. This is to adjust the regulations to the current value of money and to streamline proceedings.

Possibility of paying tax by a third party up to PLN 5,000

A positive change is the possibility of paying tax liabilities by third parties up to the amount of PLN 5,000 instead of the previous amount of PLN 1,000.

Instrumental initiation of penal fiscal proceedings without (significant) changes

Changes to the provisions on the limitation of tax liabilities were to solve the problem of abuse by the institutions of instrumental initiation of penal-fiscal proceedings. It ended with appearances. The provision that has been the most controversial for years – art. 70 § 6 item 1 of the Tax Ordinance – remains. It still allows the limitation period to be suspended at the time of initiation of penal-fiscal proceedings.

The mechanism for suspending the limitation period is to apply only to cases in which the tax deduction exceeds the so-called small value – today it is over PLN 933,000.

Changes to the Fiscal Penal Code

A new institution has been introduced to the Fiscal Penal Code – a penalty notice in absentia. According to the bill’s authors, this is a way to simplify the procedure for perpetrators of fiscal offences who were not found at the scene of the incident.

It will also be possible to issue a fine in absentia to persons living abroad, staying temporarily in Poland or leaving it temporarily.

The draft act provides for the repeal of Article 44 § 2 of the Fiscal Penal Code, according to which the punishability of a fiscal offence consisting in reducing or exposing a public law receivable to reduction also ceases in the event of the statute of limitations of that receivable.

The currently applicable provision introduces the principle of rational connection of the financial interest of the State Treasury with the interest of prosecution - if the state loses the possibility of pursuing a claim, it also waives criminal repression related to its reduction. The planned change means a departure from this solution. The repeal of art. 44 § 2 of the Penal Code will lead to a situation in which the limitation period of a tax liability will not affect the possibility of conducting fiscal criminal proceedings.

When will new tax regulations be implemented?

The main date of entry into force of the proposed amendment is 1 January 2026. However, there are exceptions to this rule. Beneficial for taxpayers, the changes in the limitation period for secured liabilities and provisions regarding the p.p.s.a. and e-Tax Office will enter into force the day after the publication of the act. In turn, the default penalty will enter into force 6 months later. The introduced changes are to bring benefits to micro, small and medium-sized enterprises, including simplifications in reporting tax schemes.

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