KPMG Weekly Tax Review. First session of government in its new composition

During the Sejm session held from 22 to 25 July 2025, the following statutes were passed:

• the act amending the Value-Added Tax Act and amending the act amending the Value-Added Tax Act and certain other acts,  which provides for introduction and simplification of the National e-Invoicing System (KSeF), i.e., a dedicated electronic system for issuing and receiving electronic invoices – new regulations (with some exceptions) are to enter into force on the day following the act’s promulgation in the Polish Journal of Laws;
• the act amending certain acts to simplify administration procedures and promote entrepreneurship, providing for, among other measures, extending the concept of tacit consent in administrative matters and simplifying the operation of unregistered business activities (by amending the applicable thresholds) –  new regulations are to take effect 6 months after publication in the Polish Journal of Laws (except for the provisions on the revenue threshold for unregistered business activities, which are to take effect on 1 January 2026);
• the act amending the Fiscal Criminal Code and the Polish Tax Code, providing, inter alia, for relaxing penalties for actions that do not cause direct tax losses and eliminating the obligation for the remitter/collector to report individuals responsible for calculating, collecting, and remitting taxes – the new regulations are set to come into effect on 1 January 2026;
• the act amending certain acts to deregulate the energy sector, which, among other measures, introduces simplified electricity billing, broadens the use of electronic communication with energy companies, expands cable pooling, facilitates the development of renewable energy sources, and eliminates the requirement for a building permit for the construction of self-use photovoltaic installations of up to 500 kW – new provisions are expected to enter into force on 01 January 2026.

The Acts now move to the Upper House of the Polish Parliament.

Furthermore, the Sejm assessed the Senate’s amendments to the following statutes:

• the act amending the Gift and Inheritance Tax Act, changing, inter alia, the rules for settling tax on recurring performances – new regulations are to enter into force 14 days after publication in the Polish Journal of Laws;
• the act amending the Act of Social Forms of Housing Promotion and certain other acts, which provides for a gradual increase in the maximum limit of state budget expenditure to support the Subsidy Fund, enables the allocation of funds for social housing initiatives, and grants municipal councils the authority to set limits on the number of units within local urban planning standards – the new regulations (with some exceptions) are to enter into force 14 days after promulgation.

The acts now move to the President.

Ustawa o zmianie ustawy o podatku od towarów i usług oraz zmieniająca ustawę o zmianie ustawy o podatku od towarów i usług oraz niektórych innych ustaw

Ustawa o zmianie niektórych ustaw w celu uproszczenia procedur administracyjnych oraz wsparcia przedsiębiorczości

Ustawa o zmianie ustawy – Kodeks karny skarbowy oraz ustawy – Ordynacja podatkowa

Ustawa o zmianie niektórych ustaw w celu dokonania deregulacji w zakresie energetyki

Ustawa o zmianie ustawy o podatku od spadków i darowizn

Ustawa o zmianie ustawy o społecznych formach rozwoju mieszkalnictwa oraz niektórych innych ustaw

On 23 July 2025, the President signed two new deregulation statutes into law, namely:

• the act amending the Personal Income Tax Act and the Corporate Income Tax Act, providing for the removal of the obligation to submit an annual report on the composition of partners in a general partnership under the CIT Act (provided no changes have occurred) and introduction of more lenient tax refund rules in cases where a decision on support within the Polish Investment Zone (PSI) or a permit to operate in Special Economic Zones (SSE) is revoked – new provisions are expected to enter into force on 01 January 2026 and the act is to be promulgated no later than on 30 July 2025;
• the act of 9 July 2025 amending the Accounting Act and Act on Statutory Auditors, Audit Companies, and Public Supervision, and certain other acts, which delays by two years the entry into application of the Corporate Sustainability Reporting Directive requirements for (second-wave) large companies as well as (third-wave) small and medium-sized businesses – new regulations are to enter into force on the day following the act’s promulgation in the Polish Journal of Laws, with the act to be promulgated no later than 28 July 2025.

Informacja o ustawie z dnia 25 czerwca 2025 r. o zmianie ustawy o podatku dochodowym od osób fizycznych oraz ustawę o podatku dochodowym od osób prawnych

Informacja o ustawie z dnia 9 lipca 2025 r. zmieniającej ustawę o zmianie ustawy o rachunkowości, ustawę o biegłych rewidentach, firmach audytorskich oraz nadzorze publicznym oraz niektórych innych ustaw

On 25 July, the Council of Ministers held its first meeting following the official swearing-in of the newly appointed ministers.

Deregulation remains one of the government's priorities. Additionally, it was stressed that one of the biggest challenges to be faced by the government in the near future is making simplifications to the Polish tax system. Prime Minister Donald Tusk outlined the government’s agenda, stating that: I would like Poland to rank not among the countries with the most complex business and tax systems, but rather among those with the simplest and most business-friendly frameworks—so far as it is possible.

It was also announced that efforts to restore the rule of law would continue, alongside the streamlining of energy policy and the acceleration of key related projects (including the construction of a nuclear power plant, offshore wind farms in the Baltic Sea, and the so-called wind turbine law).

In the near future, the new leadership of the ministries will carry out internal reviews, based on which decisions will be made to rationalize operations, organizational structures, and expenditures.

Pierwsze posiedzenie rządu w nowym składzie

On 21 June 2025, preliminary remarks to the bill amending the Act on the Exchange of Tax Information and certain other acts were added to the list of legislative work and policies of the Council of Ministers. The goal of the bill is to implement DAC8 and DAC9 directives. It provides for, inter alia, the automatic exchange of tax-relevant information on transactions involving crypto-assets, amendments to the existing framework for the automatic exchange of information on financial accounts, enhancements to the overall information exchange system including its scope and interoperability, and provisions for the automatic exchange of information related to the implementation of top-up taxation mechanisms. The bill is anticipated to be approved by the Council of Ministers in Q3 2025. 

Projekt ustawy o zmianie ustawy o wymianie informacji podatkowych z innymi państwami oraz niektórych innych ustaw

On 18 July 2025, the Council of the European Union formally adopted new VAT rules for distance sales of imported goods. The directive will improve collection of VAT on imported goods, introducing measures to encourage suppliers to use the VAT import one-stop-shop (IOSS). Non-EU traders or platforms will now be made liable for VAT on imported goods, paid in the member state of final destination of the goods, which will likely encourage use of the IOSS for VAT. Formal adoption of the directive by the Council is the final stage of the ordinary legislative procedure. The directive will now be published in the Official Journal of the EU and will enter into force twenty days later. The rules will apply from 1 July 2028.

According to the judgment of the Supreme Administrative Court dated 23 July 2025 (case file II FSK 1402/22), the amounts of general liability insurance premiums paid for accountants and members of the company’s governing bodies shall not be treated as tax-deductible costs. According to the Court, such expenditure cannot be treated as tax-deductible costs of the company, since they are not related to the company’s revenues but with the general liability of the individuals engaged by the company and incurring individual responsibility for the functions performed. Furthermore, the Court noted that the categories of insurance, the costs of which, by way of exception, can be treated as tax-deductible costs according to the legislator, do not include general liability insurance.

According to the judgment of the Supreme Administrative Court dated 23 July 2025 (case file II FSK 1401/22), the cost (expense) incurred to take up shares in a limited partnership is not the historical costs, i.e., the cost of acquisition of the contribution made to the partnership, but the costs, which takes as its reference point the value and date of the contribution to the limited partnership. At the same time, the Court noted that in the case of withdrawal from a limited partnership, there is no possibility to reduce the revenue acquired on this account by VAT on the contribution made. This is because VAT is not a cost element in income tax, nor is it an element of revenue.

The Ministry of Infrastructure has prepared a draft regulation amending the Regulation of the Minister of Infrastructure of 25 March 2002 on conditions for determining and the method of reimbursement of costs of using passenger cars, motorcycles and mopeds not owned by the employer for business purposes (the so-called mileage allowance provisions).

The draft regulation proposes an increase in the reimbursement rates per kilometre and extends the entitlement to mileage allowances to users of electric, hybrid, and hydrogen-powered vehicles (though the applicable rates for these vehicles will be lower than for conventional ones).      

According to official announcements, the regulation is set to enter into force following the completion of legislative work on the amendment to the Road Transport Act and certain related acts.