Legislation and Practice – October in taxes and business law

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

Legislation

• The assumptions for the draft act amending the Value Added Tax Act have been published on the website of the Government Legislation Centre – an increase in the VAT rate on non-alcoholic equivalents of alcoholic beverages and selected energy drinks.
• Commission Implementing Regulation (EU) 2025/1926 of 22 September 2025 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff has been published in the Official Journal of the EU (L).
• A draft act amending the Act on Statutory Auditors, Audit Firms and Public Oversight and the Accounting Act has been published on the website of the Government Legislation Centre – removing the “white list” of services, applying directly the prohibitions resulting from the “black list” of services (concerning the Public Procurement Act).
• The Act amending the Corporate Income Tax Act has been published in the Journal of Laws (item 1426) – eliminating the need to notify about the use of the regime of a Polish holding company.
• The Act amending the Labour Code and certain other acts has been published in the Journal of Laws (item 1423) – including i.e. work on the basis of a contract of mandate, running a business or working abroad in the length of service.
• The act amending the Tax Ordinance Act has been published in the Journal of Laws (item 1417) – including doubts as to the facts in dubio pro tributario principle.
• The Act amending the Tax Ordinance Act has been published in the Journal of Laws (item 1414) – including the exclusion of the calculation of interest for late payment for the duration of a tax audit or a customs and fiscal audit if the audit lasts longer than 6 months.
• The Sejm adopted the Act amending the Corporate Income Tax Act – “tightening” changes for family foundations.
• The Sejm adopted the Act amending the Corporate Income Tax Act and the Act on the Tax on Certain Financial Institutions – increasing CIT and reducing the bank tax for banks.
• The Decree amending the Decree on the exclusion of the obligation to collect personal / corporate WHT has been published in the Journal of Laws (items 1390 and 1400) – extension of application until 31 December 2026.
• The Council of Ministers adopted a draft act amending the Personal Income Tax Act – the increase in the cash PIT limit from PLN 1 million to PLN 2 million.
• The Council of Ministers adopted a draft act amending the Excise Duty Act – an increase in excise duty on alcohol.
• The Council of Ministers adopted a draft act amending the Inheritance and Donation Tax Act – including the restoration of the deadline for reporting acquired property by members of the immediate family if they prove that it was exceeded through no fault of their own.
• The Council of Ministers adopted a draft act amending the Corporate Income Tax Act – extending the exemption from WHT to non-EU investment and pension funds.
• The Council of Ministers adopted a draft act amending the Act on the Social Insurance System and certain other acts – streamlining and unifying the method of issuing certificates by ZUS doctors and the rules for controlling sick leave.
• The Senate has introduced amendments to the Act on the Crypto-Assets Market – a comprehensive regulation of crypto-assets.
• A draft decree amending the Decree on additional data to be supplemented with the books of accounts subject to transfer under the Corporate Income Tax Act has been published on the website of the Government Legislation Centre.

Practice in taxes

Income taxes and transfer pricing

• The exchange of shares, motivated by the preparation of the structure for succession and facilitation of group management, does not constitute tax avoidance – security opinion of the Head of the National Tax Administration of 16 September 2025, file reference number DKP3.8082.6.2025 (published on 6 October 2025).
• The Ministry of Finance is considering the introduction of binding statistical information (e.g. in the field of PKWiU) for income tax purposes – response to parliamentary question no. 11774 of 7 October 2025, file reference number DD2.054.15.2025.
• Expenses for the purchase of trips for managers are a tax-deductible cost in CIT, as a form of additional remuneration – individual interpretation of the Director of the National Tax Information of 7 October 2025, file reference number 0114-KDIP2-2.4010.389.2025.4.PK.
• Contractual penalties for delays in supplies or services may be tax costs if they are not at fault and meet the general conditions for inclusion in tax costs – judgment of the Supreme Administrative Court of 9 October 2025, file reference number II FSK 1655/24.
• The use of a car for mixed purposes by the CEO who is a shareholder of the company constitutes (taxed) hidden profit in the “Estonian” CIT – judgment of the Supreme Administrative Court of 15 October 2025, file reference number file I FSK 125/23.
• Depreciation write-offs on own fixed assets are subject to exclusion from the calculation of the “domestic” minimum tax – judgment of the District Administrative Court in Wroclaw of 23 October 2025, file reference number I SA/Wr 320/25.
• The exemption of a Polish holding company applies even if the taxpayer is not able to identify all indirect shareholders, including those of the stock exchange – judgment of the District Administrative Court in Warsaw of 24 October 2025, file reference number III SA/Wa 1520/25.

International taxes

• Sales intermediation and procurement coordination services are subject to WHT in Poland, as services similar to the statutory catalogue of taxable benefits – judgment of the Supreme Administrative Court of 9 October 2025, file reference number II FSK 112/23.
• The activity in Poland of auxiliary/preparatory staff as part of the “Home Office”, not related to the taxpayer’s main line of business, does not create a permanent establishment (PE) of a foreign taxpayer in Poland – judgment of the Supreme Administrative Court of 28 October 2025, file reference number. II FSK 163/23.

VAT

• CSR expenses give the right to deduct VAT – judgment of the District Administrative Court in Gdansk of 1 October 2025, file reference number file I SA/Gd 561/25.
• The Supreme Administrative Court has referred a legal question to the CJEU regarding the application of the VAT exemption for the sale of greenhouse gas emission allowances – are transactions of timely sale of allowances with the option of cash settlement exempt from tax when the underlying instruments are not delivered and the allowances themselves are transferred? (decision of 1 October 2025, file reference number I FSK 1589/22).
• Training services are exempt from VAT even if they are not provided on the terms set out in separate regulations – judgment of the Supreme Administrative Court of 3 October 2025, ref. file reference number I FSK 1371/22.
• Parking a company car at the taxpayer’s place of residence does not deprive the taxpayer of the full right to deduct input tax – judgment of the Supreme Administrative Court of 3 October 2025, file reference number I FSK 1618/22.
• Receipt of an invoice outside the KSeF (Polish mandatory e-invoicing) does not cancel the right to deduct input tax – individual interpretations of the Director of the National Tax Information of 13 and 20 October 2025, file reference number 0113-KDIPT1-3.4012.833.2025.2.ALN and 0114-KDIP1-3.4012.739.2025.1.AMA.
• For the exemption/taxation of the supply of undeveloped land from VAT, the primary purpose is decisive, not supplementary – judgment of the Supreme Administrative Court of 16 October 2025, file reference number I FSK 1180/22.
• The reimbursement of expenditures for a building on someone else’s land constitutes a supply of goods in VAT, where it is possible to apply the exemption for supplies after the first occupation – judgment of the Supreme Administrative Court of 23 October 2025, file reference number I FSK 1180/22.

Other

• Tanksilos are structures for real estate tax purposes, regardless of their technological or storage functions – judgment of the Supreme Administrative Court of 7 October 2025, file reference number III FSK 738/24.
• New circumstances or new evidence that were known to the party during the tax proceedings, but were not invoked by the party, may be considered a prerequisite for the resumption of tax proceedings at the request of a party – resolution of seven judges of the Supreme Administrative Court of 13 October 2025, file reference number II FPS 3/25.
• The sale of receivables to a securitization fund constitutes a tax scheme (MDR) – an individual interpretation of the Director of the National Tax Information of 17 October 2025, file reference number 0114-KDIP2-2.4017.1.2021.19.S/SP.
• The so-called “soft hybrids” are subject to a reduced rate of excise duty – judgment of the Supreme Administrative Court of 23 October 2025, file reference number I FSK 2037/24.
• Due to the reduction of NBP interest rates, the amount of interest on tax arrears will decrease from 12.5% to 12% from 9 October 2025.