MDR reporting in Poland – tax schemes
MDR – the most important information
Until September 30, 2026, Polish regulations cover both cross-border schemes and, subject to additional conditions, so-called domestic schemes. After this date, the MDR system will be limited to cross-border arrangements. However, this change in regulatory scope does not mean the end of MDR obligations for companies operating across borders.
Do you have any doubts as to whether a transaction is subject to MDR?
MDR risk can arise in restructurings, intragroup financings, ownership changes, cross-border payments, and other international arrangements, among other situations. Crowe can analyse the event, define the responsibilities of participants, and support the preparation of appropriate reporting.
What is the MDR tax scheme?
A tax scheme is not synonymous with "tax optimization," nor does it automatically constitute illegal activity. The starting point is an arrangement, meaning an activity or set of related activities in which at least one party is a taxpayer or which has or may have an impact on the creation of a tax liability. For an MDR obligation to arise, the arrangement must meet additional criteria specified in the Tax Ordinance, particularly those concerning the hallmarks and, in certain cases, also the criterion of the main benefit.
In practice, the correct order of analysis is crucial. First, it is necessary to determine whether an arrangement exists, then identify the relevant hallmarks, evaluate the relevance of the main benefit criterion, and assess whether the arrangement is cross-border in nature.
When is it worth analysing a transaction for MDR?
MDR analysis is particularly important prior to implementation or early in the transaction process, as the basic reporting deadlines are tight. In particular, the following may require verification:
- restructuring of capital groups, reorganizations and changes in the ownership chain;
- intra-group financing, loans, refinancing and other flows between entities from different jurisdictions;
- cross-border payments, including settlements with related entities;
- transfer of functions, assets, risks or intangible assets between countries;
- implementing solutions prepared by consultants or other external entities;
- repeatable solutions used in more than one company or made available to a larger number of users;
- taking advantage of tax reliefs and exemptions.
Important
The cross-border nature of a transaction alone does not necessarily constitute a reporting obligation. It is necessary to analyse the statutory hallmarks and other conditions of a specific arrangement.
What is subject to MDR reporting?
Until September 30, 2026, a distinction must be made between cross-border and non-cross-border schemes. From October 1, 2026, the scope of Polish MDR regulations will be limited to cross-border arrangements.
Who reports MDR: promoter, user and supporter
Until September 30, 2026, MDR obligations may apply to three roles. Correctly determining the participant's role is crucial because it influences who submits information, by when, and to what extent.
- Promoter: the entity that develops, offers, makes available, implements an arrangement, or manages its implementation.
- User: an entity to which the arrangement has been made available, where it is being implemented, which is ready for implementation or has performed an action aimed at implementation.
- Supporter: an entity providing assistance, support or advice related to the development or implementation of a scheme if the statutory conditions are met.
Effective October 1, 2026, the structure of these roles will change. The amendment will include some activities previously performed by support staff within the broader definition of a promoter. Therefore, companies should update their responsibility assignments and information flow before the new rules take effect.
MDR reporting deadlines and key forms
The most common deadline for submitting MDR-1 information is 30 days, but the starting point for the deadline depends on the entity's role and the event triggering the obligation. The promoter and beneficiary generally count 30 days from the day following the first relevant event related to provision, preparation for implementation, or the first implementation activity. The supporter has separate deadlines, including 5 business days for specific actions in the event of doubts, and 30 days for providing assistance, support, or advice if the statutory requirements are met.
- MDR-1: information on the tax scheme submitted to the Head of the National Revenue Administration; after correct notification, the Tax Office receives the scheme.
- MDR-3: information from the beneficiary about the application of the scheme or obtaining a tax benefit. From October 1, 2026, the mechanism will be restructured and will generally be annual.
- MDR-4: information on the provision of a standardised scheme; after the changes, the promoter will remain obliged to update the data within 30 days after the end of the quarter.
The most common source of errors
In practice, the problem often lies not in completing the form itself, but in first determining whether a given event constitutes a pattern, who should report it, and from what point the deadline begins. Therefore, it is best to begin the analysis by qualifying the reconciliation, not by selecting the form.
What changes in the MDR from October 1, 2026?
The Act of May 29, 2026, amending the Tax Ordinance and certain other acts (Journal of Laws of 2026, item 846) was announced on June 25, 2026, and will enter into force in its main part on October 1, 2026. For entrepreneurs, four directions of changes are most important:
- moving away from reporting domestic tax schemes and focusing MDR on cross-border arrangements;
- exclusion of VAT and excise tax arrangements from the MDR provisions;
- changing the structure of participants’ roles, including a broader approach to the promoter;
- repealing Articles 86k–86m of the Tax Ordinance, including the statutory obligation to have an internal MDR procedure, and restructuring MDR-3 towards reporting, as a rule, once a year.
However, transitional provisions require separate analysis. Events initiated before 1 October 2026 should not be automatically considered "closed" simply because the scope of the MDR changes.
Full analysis of the reform: MDR – the end of reporting domestic tax schemes. What changes for entrepreneurs?
| Area | Until 30 September 2026 | From 01 October 2026 |
|---|---|---|
| National schemes | Reported after meeting statutory conditions | Outside the scope of MDR |
| Cross-border schemes | They remain within the scope of MDR | They remain within the scope of MDR |
| VAT and excise duty | May appear in MDR analysis | Excluded from MDR |
| MDR procedure | Statutory obligation for certain entities | Art. 86k–86m repealed |
| MDR-3 | Related to the tax settlement period | As a rule, once a year |
Does every tax benefit constitute an MDR scheme?
No. The mere existence of a tax advantage does not constitute an MDR obligation. Legal tax preferences, such as the R&D tax credit or the IP Box, do not automatically constitute a tax scheme simply because they reduce liability. The statutory requirements for a specific arrangement must be examined on a case-by-case basis.
Sanctions for breach of MDR obligations
Failure to comply with reporting obligations may result in fiscal criminal liability for the person obligated to act. Article 80f of the Fiscal Penal Code provides for a fine of up to 720 daily rates for the most serious violations. The final amount of the sanction depends on the penalty rules and the circumstances of the specific case.
An administrative penalty regime related to the obligation to have and use an internal MDR procedure is also in place until September 30, 2026. As of October 1, 2026, with the repeal of Articles 86k–86m of the Tax Ordinance, this statutory obligation ceases. However, this does not eliminate liability for failure to comply with the remaining reporting obligations.
MDR Reporting – How can Crowe experts help?
Crowe's support combines legal and tax analysis with practical structuring of the reporting process. The scope of cooperation can be tailored to a single transaction, ongoing compliance, or an organization-wide review.
Not sure if a transaction constitutes a tax scheme? We analyse the arrangement based on its hallmarks, the main benefit criterion, cross-border nature, and other MDR criteria.
Is your reporting deadline approaching? We can help you determine your entity's role, the appropriate deadline, and the scope of your data, and support you in preparing your MDR-1, MDR-3, or MDR-4.
Does your company operate in multiple jurisdictions? We review transactions, restructurings, and intragroup flows from the perspective of Polish MDR regulations and the DAC6 directive.
Are you preparing your organization for October 1, 2026? We are reviewing open obligations and transitional provisions, updating responsibility matrices, checklists, and internal MDR identification policies.
Want to reduce operational risk? We provide training for tax, finance, legal, accounting, and business teams, focusing on events that may actually trigger reporting obligations.
What is it like working with Crowe on MDR?
| Stage | What we do |
|---|---|
| 1. Preliminary qualification of the event | We determine the scope of the transaction, participants, and information needed to assess MDR. |
| 2. Analysis of the reporting obligation | We assess the hallmarks, the main benefit criterion, the cross-border nature and the roles of the participants. |
| 3. Reporting and documentation | We support the preparation of appropriate MDR information and document the basis for the adopted qualification. |
| 4. Organizing the process | As needed, we update responsibilities, information flow, checklists and training materials. |
Why is it worth combining MDR analysis with broader tax compliance?
MDR rarely operates in isolation from other tax jurisdictions. Cross-border transactions may simultaneously require analysis of transfer pricing, withholding tax, restructuring, financing, or cross-jurisdictional implications. Combining these perspectives reduces the risk of MDR obligations being assessed only at the end of the process, after the reporting deadline has already begun.
FAQ – Frequently asked questions about MDR
No. The Polish obligation to report domestic schemes will disappear, but MDR will remain for cross-border arrangements that meet the statutory requirements.
Yes. Until the main part of the amendment comes into force, the existing provisions remain in force. For events occurring during the transitional period, transitional provisions must also be taken into account.
No. The qualified beneficiary criterion applies to non-cross-border schemes. A cross-border scheme may be reportable regardless of these thresholds.
No. The NSP serves to identify the scheme and does not constitute confirmation of the correctness of the settlement or acceptance of the tax consequences.
Not under the current regime, as the amendment repeals Articles 86k–86m. However, companies operating internationally should still maintain a proportionate MDR review process as part of their tax compliance.
This is especially true when the transaction is multi-stage or cross-border, involves several entities, there are several possible MDR roles, or the reporting deadline is approaching and quick qualification is needed.
Yes. The scope of support may include qualifying the agreement, determining the role and deadline, preparing data for the appropriate form, and verifying the consistency of the submission with the adopted analysis.
Yes, especially for organizations that reported domestic schemes or operate cross-border. This review allows us to separate obligations that are being phased out from those that remain, and to prioritize events covered by transitional provisions.
Need support with MDR reporting?
Contact Crowe experts if you need to review a specific transaction, sort out open obligations, or prepare your organization for a new cross-border reporting model.
