Legislation and Practice – May in taxes and business law

We present below a short summary of the most important changes in tax/business law and practice in May.

Legislation

• The Council of Ministers adopted a draft act amending the Fiscal Penal Code and the Tax Ordinance Act – simplification of administrative tax obligations and mitigation of penalties for fiscal crimes.
• The Assumptions for the draft decree of the Council of Ministers on the Polish Classification of Goods and Services (PKWiU) have been published on the website of the Government Legislation Centre – introduction of PKWiU 2025.
• The Senate introduced an amendment to the acts amending the Labour Code – including the transparency of remuneration in recruitment.
• Implementing Regulation 2025/1093 laying down rules for the application of Regulation (EU) 2023/1115 of the European Parliament and of the Council as regards a list of countries that present a low or high risk of producing relevant commodities for which the relevant products do not comply with Article 3, point (a) has been published in the “Official Journal of the EU” – the list of high/low risk countries for the purposes of the EUDR.
• The so-called “deregulation” act – an act amending certain acts in order to deregulate economic and administrative law and improve the principles of developing economic law – has reached the President’s desk.
• The Council of Ministers adopted a draft act amending the Personal Income Tax Act and the Corporate Income Tax Act – removal of the obligation to file the annual CIT-15J, repeal of the sanction of the TCG losing the status of a CIT taxpayer in the case of controlled transactions with related entities from outside the group on non-arm’s length terms, alternative mechanism for determining the tax when repealing/withdrawing the decision on support/permit.
• The European Parliament approved – as part of the “Omnibus” package – the introduction of the CBAM (“de minimis”) exemption threshold – imports up to 50 tonnes.
• The Council of Ministers adopted a draft act amending the Tax Ordinance Act – resolving factual doubts in favour of the taxpayer.
• The assumptions for the act amending the Personal Income Tax Act and the Corporate Income Tax Act – including the reduction of the highest number of daily fines imposed for fiscal offences of a formal nature, i.e. concerning documents in the form of statements and information required by tax regulations – have been published on the website of the Government Legislation Centre.
• The Council of Ministers adopted a draft act amending the Corporate Income Tax Act – elimination of the need to publish information on the implemented tax strategy.
• The Council of Ministers adopted a draft act amending the VAT Act – increasing the amount of the subjective exemption from PLN 200 thousand to PLN 240 thousand.
• The Council of Ministers adopted a draft act amending the Act on the National Tax Administration and the VAT Act – changes in the scope of submitting corrections of declarations after the end of a customs and tax audit.
• The Council of Ministers adopted a draft act amending the Tax Ordinance Act – at least a 6-month vacatio legis in (unfavourable) tax act drafts submitted to the Sejm.
• The President vetoed the Act amending the Act on health care services financed from public funds and certain other acts – reduction of the health contribution for entrepreneurs.
• A draft act amending the Tax Ordinance Act has been published on the website of the Government Legislation Centre – exclusion of the calculation of interest for late payment for the time of a tax audit or a customs and fiscal audit if the audit lasts longer than 6 months, unification of the length of the period conditioning the non-calculation of interest for late payment in the case of protracted tax proceedings.
• A draft act amending the Accounting Act, the Act on Statutory Auditors, Audit Firms and Public Oversight and Certain Other Acts has been published on the website of the Government Legislation Centre – implementation of the “Omnibus” (ESG) Package.
• Draft of decrees on cash registers and on cash registers in the form of software have been published on the website of the Government Legislation Centre.

Practice in taxes

Income taxes and transfer pricing

• The sale of shares through a family foundation may be artificially and constitute tax avoidance – refusal to issue a protective opinion by the Head of the National Tax Administration of 17 April 2025, file reference number DKP1.8082.6.2024 (published on 5 May 2025).
• Penalty for non-culpable, partial failure to perform a supply may be a tax expense in CIT – judgment of the Supreme Administrative Court of 6 May 2025, file reference number II FSK 1012/22.
• A change in depreciation rates is also permissible with respect to past tax settlements – judgment of the Supreme Administrative Court of 7 May 2025, file reference number. II FSK 1028/22.
• A loss caused by cyber fraud, resulting from a lack of due diligence, does not constitute a tax expense – judgment of the District Administrative Court in Kraków of 8 May 2025, file reference number I SA/Kr 142/25.
• Transformation of a general partnership into a limited partnership does not constitute tax avoidance, even if it is tax-motivated – protective opinion of the Head of the National Tax Administration of 16 April 2025, file reference number DKP16.8082.12.2024 (published on 8 May 2025).
• Compensation awarded on the basis of a court judgment is free from PIT only if it covers actual damage (without lost profits) – individual interpretation of the Director of the National Tax Information of 9 May 2025, file reference number 0113-KDIPT2-3.4011.239.2025.1.MS.
• The general contractor may include the remuneration paid to a further subcontractor as part of joint and several liability as tax costs – judgment of the District Administrative Court in Poznan of 13 May 2025, file reference number I SA/Po 153/25.

VAT

• The performance of many similar, recurring services may justify the settlement of the tax liability in VAT for continuous services – judgment of the Supreme Administrative Court of 19 May 2025, file reference number I FSK 1995/21.
• It is possible to distinguish the elements that make up a comprehensive VAT service on an invoice – judgment of the Supreme Administrative Court of 19 May 2025, file reference number I FSK 2217/21
• The sale of a building under construction is not subject to taxation pursuant to Article 43 sec. 1 point 10 of the Polish VAT Act – judgment of the Supreme Administrative Court of 21 May 2025, file reference number I FSK 340/22.
• Renting an apartment to an entrepreneur who temporarily places its employees there may benefit from the 8% VAT rate – judgment of the Supreme Administrative Court of 21 May 2025, file reference number I FSK 2568/21.
• Short-term rental of apartments for employees is not (exempt from VAT) rental for residential purposes – judgments of the Supreme Administrative Court of 28 May 2025, file reference number I FSK 1071/21 and I FSK 1091/21.

International Taxes

• A collective certificate of residence meets the requirements resulting from the definition of a certificate of residence in the PIT Act – individual interpretation of the Director of the National Tax Information of 20 May 2025, file reference number 0113-KDIPT2-3.4011.282.2025.1.NM.
• Income, not revenue, is the basis for calculating the proportion of foreign tax deduction in CIT – judgment of the Supreme Administrative Court of 28 May 2025, file reference number II FSK 1131/22.

Other

• If a foreign entity has a registered branch in Poland and conducts business itself, it should use a single NIP number – judgment of the Supreme Administrative Court of 8 May 2025, file reference number III FSK 172/25.
• Even if the potential connection of the building with business activity justifies taxation with the highest rate of real estate tax – judgments of the Supreme Administrative Court of 13 May 2025, file reference number III FSK 279-280/24.
• Presenting on billboards and in promotional leaflets the logos of alcoholic beverages as well as the names and symbols of producers is not a promotion, but an advertisement and is subject to a 10% fee – judgments of the Supreme Administrative Court of 27 May 2025, file reference number III FSK 37/24 and III FSK 1288/24.
• Resolution No. 3/2025 of the Accounting Standards Committee of 18 March 2025 on the adoption of the Position of the Accounting Standards Committee on the classification of public law charges and identification of those related to turnover (turnover taxes), as well as the rules for recognising turnover taxes for the purposes of preparing financial statements, has been published in the Official Journal of the Minister of Finance.