We have has recently attended a series of meetings with representatives of the Finance Ministry (FM) regarding upcoming changes to tax law. Below is a summary of the most significant developments.

MDR Reporting

The FM aims to reduce the compliance burden associated with Mandatory Disclosure Rules (MDR). Plans include eliminating approximately 70% of domestic reportable arrangements (tax schemes) and abolishing the requirement to file Form MDR-2. Ministry representatives have announced that public consultations on the proposed implementing legislation will begin soon.

Publication of Tax Strategy Reports

The FM intends to abolish the obligation for large companies (with revenues exceeding EUR 50 million) to publish tax strategy reports. However, FM representatives were unable to confirm whether this change will take effect already for 2024 or will apply for the first time by reference to 2025.

Withholding Tax Guidance

The FM has prepared and approved guidance on the application of the look-through approach, which allows withholding agents to apply reduced tax rates under double tax treaties between Poland and the beneficial owner’s home country. However, guidance regarding the beneficial owner test is still pending approval. The full guidance document is expected to be published in March.

Applying for Explanatory Guidance from the Supreme Administrative Court (SAC)

Also, the FM has confirmed plans to grant the Finance Minister new powers to request “abstract resolutions” from the SAC. These resolutions would provide interpretative guidance on legal provisions that create uncertainty. The purpose is to ensure uniform application of tax law by tax authorities.

Consultations on Proposed Pillar 2 Adjustments to R&D Relief

Recognizing the importance of R&D relief for Poland’s global competitiveness as an investment hub, the FM has proposed modifications to align the relief with the global minimum tax framework (Pillar 2). Three potential approaches are under consideration to mitigate the impact of R&D relief on the effective tax rate:

  1. Cash refund for unused R&D relief.
  2. R&D relief as a tax credit which could be deducted from tax, with any remaining amount refunded in cash.
  3. Splitting R&D relief into two components: personnel expenses, which would be excluded from both the relief and corporation tax, and asset expenses, which would continue to qualify for R&D relief.

The FM has emphasized that, while three options are being proposed, they intend to focus on one, which will be further discussed with industry representatives before becoming a legislative proposal to amend the R&D relief regulations.

WTS&SAJA  will remain actively engaged in these developments. We will keep you informed on further progress.

If this issue pertains to your business and you are interested in our assistance, please contact us.

This blog post is provided for general information purposes to keep you up-to-date with changes in tax law, tax rulings by authorities, case law of courts and interesting commentaries. Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions resulting from reliance on such information.