The government claims that the aim of these changes is to simplify the tax system, increase its transparency, and reduce bureaucracy for businesses – unfortunately, this is not always the case.
Extended Vacatio Legis, reduced interest for prolonged audits
The changes introduce a six-month vacatio legis for tax law bills and amendment bills submitted to the Parliament.
Vacatio legis, the period between the publication of a law and its entry into force, serves a critical function in a democratic state governed by the rule of law. A longer transitional period gives businesses and citizens time to adapt to new regulations, plan their actions, and avoid legal uncertainty. Past practices, where tax law changes came into force almost immediately, were often criticized for destabilizing the business environment.
The announced reforms also include a provision to exclude the accrual of interest on tax arrears if a tax or customs-tax audit exceeds six months. The draft law also proposes the standardization of rules concerning interest-free periods, regardless of the type of audit conducted.
Draft act amending the Corporate Income Tax Act
The draft proposes the complete removal of the obligation for the largest CIT taxpayers to publish information about their implemented tax strategy. Currently, this obligation applies to taxpayers whose annual revenue exceeds the equivalent of EUR 50 million. The tax strategy disclosure includes, among other things: information on transactions with related parties, planned or undertaken restructuring activities, fulfillment of tax obligations, and the number of tax scheme disclosures submitted to the Head of the National Revenue Administration. The repeal of Article 27c of the CIT Act aims to reduce informational burdens on businesses. In practice, many published strategies were generic and provided little real informational value.
Draft act amending the Value Added Tax Act
The most important and anticipated change is the increase of the VAT exemption threshold from the current PLN 200,000 to PLN 240,000 per year. This means a larger group of entrepreneurs will be able to benefit from simplifications associated with not having to register for VAT purposes. For taxpayers starting a business during the tax year, the principle of proportionality will still apply when calculating the exemption threshold. This means that newly established businesses will be able to use the VAT exemption if their projected net sales value does not exceed PLN 240,000, proportionally adjusted to the period of business activity within the given tax year.
Changes in the ability to adjust tax liabilities during and after customs-tax audits
After the completion of a customs-tax audit, a taxpayer will be allowed to submit a corrected tax return that partially incorporates the irregularities identified by the authorities. Previously, the correction had to fully reflect the findings of the audit. Additionally, the taxpayer will be able to submit an initial (previously unfiled) declaration within 14 days from the start or end of the audit. Earlier regulations were unclear and raised doubts about the ability to submit such declarations during an ongoing audit. These new measures are intended to expedite the conclusion of audits without the need to initiate formal tax proceedings, and to avoid additional interest charges if the tax arrears are settled following the submission of the return or correction.
The proposed changes are scheduled to take effect on January 1st, 2026.
