MDR – the end of reporting domestic tax schemes in Poland. What changes for entrepreneurs?
The amendment to the Tax Ordinance Act of 29 May 2026 marks a departure from a solution that for years exceeded the requirements of EU law and generated significant administrative burdens for entrepreneurs, accountants, and tax advisors. However, this does not mean the complete elimination of the MDR. Obligations regarding cross-border tax schemes will remain in force, but some provisions will be clarified or amended.
The most important information
- from October 1, 2026, the obligation to report so-called domestic tax schemes will disappear
- cross-border schemes are still subject to reporting
- the responsibilities of promoters are changing
MDR – what are tax schemes?
A tax scheme is an arrangement (e.g., contract, agreement, specific ownership structure) that meets the statutory criteria set out in the Tax Ordinance and may be subject to mandatory disclosure as a tax scheme. Mandatory Disclosure Rules (MDR) were introduced into Polish law in 2019 as an implementation of the EU's DAC6 directive. The purpose of these regulations was to enable tax administrations to more quickly identify arrangements that could lead to aggressive tax optimization, especially across borders.
However, Polish lawmakers have decided to significantly expand the scope of obligations arising from the Directive. In addition to cross-border schemes, the reporting obligation also covers domestic arrangements, meaning those without any international element. This element has been the most controversial from the outset and is now subject to change.
Why was the national MDR criticized?
In recent years, businesses have repeatedly pointed out that Polish MDR regulations are among the most stringent in the European Union. In practice, the reporting obligation often required analysis of standard business activities, such as:
- financing of leasing activities,
- routine transactions between related entities,
- payment for services provided by entities from other countries,
- taking advantage of certain tax breaks,
- changing the way we do business.
In many cases, simply determining whether a given arrangement constituted a tax scheme required a detailed analysis of the regulations and the involvement of tax advisors. This resulted in, among other things, high tax service costs, increased compliance obligations, and the risk of fiscal criminal liability for incorrect classification of events.
End of reporting of domestic MDR tax schemes from 1 October 2026
The most important change introduced by the amendment is the elimination of the obligation to report domestic tax schemes.
From 1 October 2026, businesses will no longer be required to analyse and report domestic arrangements solely for MDR purposes. This is a departure from a solution that for years went beyond the minimum standard under the DAC6 Directive.
For entrepreneurs, this means primarily:
- significant reduction in the number of MDR reports,
- reducing costs related to ongoing tax services,
- simplification of compliance procedures,
- reducing the risk of sanctions for incorrect classification of the scheme,
- the ability to focus resources on real tax risks.
The abolition of the obligation to report domestic MDR schemes is one of the most anticipated tax changes in recent years and undoubtedly good news for the majority of entrepreneurs operating exclusively on the domestic market.
Szymon Lipiński
Senior Tax Consultant | Tax advisory | Crowe Poland
Crowe Poland expert comment:
Is MDR being completely abolished?
The answer is No. This is a crucial point that deserves to be clearly emphasized. The amendment does not eliminate the entire MDR system but limits its scope to the level required by European Union law.
Cross-border schemes, i.e. arrangements that meet the criteria set out in the regulations implementing the DAC6 Directive, will continue to be subject to the reporting obligation.
Below is a table summarizing the most important changes.
| Before October 1, 2026 | After October 1, 2026 |
|---|---|
| national MDR reporting | no |
| cross-border MDR reporting | yes |
| MDR-3 | yes |
| MDR-4 | yes |
| MDR procedures | no |
Cross-border MDR reporting obligations will remain relevant primarily for entrepreneurs:
- operating on foreign markets,
- making transactions with entities from other countries,
- participating in international holding structures,
- using cross-border tax solutions.
Companies operating internationally should not abandon their existing MDR procedures. However, they will need to be updated and adapted to the new regulations.
What other changes to the MDR does the amendment introduce?
The amendment also includes a number of changes streamlining the reporting system. The regulations are intended to align with the current requirements of the DAC6 and DAC8 directives and the case law of the Court of Justice of the European Union.
In practice, this means, among other things:
- clarifying the scope of responsibilities of promoters, users and supporters,
- changing the reporting rules for entities covered by professional secrecy,
- organizing the scope of information provided to the Head of the National Revenue Administration,
- reducing the interpretation doubts that have arisen since the beginning of the MDR.
It can be expected that the new regulations will be more transparent than the existing ones.
Greater protection of professional secrecy
Another important element of the amendment is the alignment of Polish regulations with the CJEU judgment in Case C-694/20. Previously, reporting obligations have generated considerable controversy in the context of the professional secrecy obligation of tax advisors, attorneys, and legal counsels. The new regulations are intended to better balance the reporting obligation with the protection of the relationship between a professional attorney and their client.
Important - liability for breach of MDR obligations remains
Limiting the scope of MDR reporting does not eliminate liability for breaching reporting obligations. On the contrary, businesses operating internationally should pay particular attention to the new regulations regarding liability for late submission of MDR-3 and MDR-4 information. Failure to meet deadlines may result in liability under the Fiscal Penal Code. Therefore, businesses operating cross-border schemes should continue to monitor reporting obligations and maintain appropriate internal procedures.
How should entrepreneurs prepare for change?
The entry into force of new regulations should be treated as an opportunity to review existing tax procedures. We particularly recommend:
For many organisations, this will also be a good time to simplify internal procedures and reduce the costs associated with ongoing monitoring of domestic tax schemes.
How can Crowe Polska experts help?
The change in MDR regulations is a good time to verify whether the procedures in force in the organization comply with the new regulations.
Crowe experts support entrepreneurs in areas such as:
- analysis of reporting obligations,
- identification of cross-border patterns,
- preparation and verification of MDR reports,
- training for financial and tax departments,
- ongoing advice on obligations arising from the Tax Ordinance.
The most important conclusions for entrepreneurs resulting from the amendment to the Tax Ordinance
- national MDRs disappear
- cross-border stays
- procedures need to be verified
- it is worth performing an MDR audit
Checklist for an entrepreneur
Before October 1, 2026, check:
- whether your company reported national MDRs
- whether it carries out foreign transactions
- whether the MDR reporting procedure needs to be updated
- who is responsible for MDR
- whether employees require training
FAQ - frequently asked questions
No. The obligation to report domestic tax arrangements will be abolished. Cross-border arrangements resulting from the regulations implementing the DAC6 Directive will continue to be reported.
Most of the MDR changes will take effect on October 1, 2026.
Yes. Reviewing existing procedures will allow you to properly prepare your organization for new regulations, reduce unnecessary obligations, and ensure compliance with the regulations that will remain in force.
In most cases, no. As of October 1, 2026, the obligation to report domestic tax arrangements will be abolished. If a business's activities do not involve cross-border arrangements, the scope of MDR obligations will be significantly limited. However, it is always worth verifying the nature of the business and transactions.
Yes. The amendment does not change the obligations arising from the EU DAC6 directive. Cross-border tax arrangements will still be subject to reporting. The primary goal of the changes is to align Polish regulations with EU standards by eliminating the additional reporting requirement for domestic arrangements.
The amendment does not introduce separate regulations regarding family foundations in the area of MDR. However, if a family foundation participates in arrangements that meet the criteria for a cross-border scheme, it may also be subject to the obligations arising from MDR regulations. Each case requires an individual analysis.
The changes themselves do not concern a specific form of business, but rather obligations related to reporting tax arrangements. Depending on the circumstances, MDR obligations may apply to both the company and other participants in the arrangement, including partners, if required by law. The nature of the specific arrangement and the role of the entity in question are crucial.
