KPMG Weekly Tax Review. 2026 budget bill preliminarily approved by Council of Ministers

On 28 August 2025, the 2026 budget bill was preliminarily approved by the Council of Ministers. The budget bill provides, among other things, that state budget revenues will total PLN 647.2 billion. This figure includes, inter alia: CIT income of PLN 80.4 billion, reflecting the planned increase in the tax rate for the banking sector; VAT income of PLN 341.5 billion, factoring in a projected nominal growth in private consumption of 6.4%, an increase in the VAT exemption threshold from PLN 200,000 to PLN 240,000, and the implementation of the National e-Invoicing System (KSeF); PIT income of PLN 32 billion, taking into account the projected increase in local government PIT income from PLN 174.1 billion in 2025 to PLN 193.8 billion (an increase of 11.4%), and excise duty income exceeding PLN 103 billion, reflecting, among other measures, a 15% increase in excise rates on alcoholic beverages. State budget expenditures are projected at PLN 918.9 billion, resulting in a budget deficit of PLN 271.7 billion. The bill assumes an inflation rate of 3% and real GDP growth of 3.5%. It will now be submitted to the Social Dialog Council for further consideration.

Założenia do projektu ustawy budżetowej na 2026 rok

On 27 August 2025, the President of the Republic of Poland signed into law the Act of 5 August 2025 amending the Act on Value-Added Tax and certain other acts, which introduces mandatory application of the National e-Invoicing System (KSeF). The new system will become mandatory on 1 February 2026 for large taxable persons, and on 1 April 2026 for other taxable persons. The Act introduces a permanent option to use the ‘offline24’ mode, allowing electronic invoices to be issued offline, outside the KSeF, and uploaded to the system immediately (at the latest, on the following working day), makes it possible to issue invoices with attachments, postpones until the end of 2026 the requirement to provide the KSeF number in payments for e-invoices, postpones until the end of 2026 penalties for errors related to invoicing via KSeF, and allows for the continuation until the end of 2026 of the option of issuing invoices via cash registers.

Furthermore, on 27 August 2025, the President signed the Act of 5 August 2025 amending the Energy Law and certain other acts. The Act introduces amendments to, among others, the CIT Act, aimed at aligning its provisions with the changes made in 2023 to the Commercial Companies and Partnerships Code, in particular to accommodate new forms of corporate reorganization, such as the new rules for horizontal mergers of sister companies, demergers by separation, and the full implementation of Directive 2009/133/EC. The Act provides, among other things, for the equal tax treatment of demergers by separation and contributions in kind to a company. New regulations are to enter into force 14 days after promulgation in the Polish Journal of Laws.

At the same time, the President vetoed the Act of 25 July 2025 amending the Fiscal Criminal Code and the Polish Tax Code, which provides for, among other measures, reducing the maximum number of daily rates for fines imposed in fiscal offences of a formal nature (480 daily rates instead of 720, or 120 daily rates instead of 240).

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

Ustawa o zmianie ustawy - Prawo energetyczne oraz niektórych innych ustaw

On 29 August 2025, a bill amending the CIT Act was published. The goal thereof is to bring changes to the method of taxation of family foundations. The bill provides, among other things, for conditioning the application of preferential tax treatment on maintaining ownership of assets for a specified period, i.e. 36 months; bringing family foundations within the scope of the controlled foreign corporation (CFC) regulations; eliminating the possibility for family foundations to avoid taxation by conducting activities through tax-transparent entities; and stipulating that the tax exemption will apply exclusively to strictly residential leases (long-term rentals), meaning situations in which a family foundation leases the specified properties to individuals for their own residential purposes. In addition, the bill includes a transitional provision under which the tax exemption will not apply to revenue earned by a family foundation from the disposal of assets contributed or donated to the family foundation, or acquired by the family foundation from a related entity, after 31 August 2025. The planned date for the Council of Ministers to adopt the bill is the third quarter of 2025. The new regulations are scheduled to enter into force on 1 January 2026. The bill is currently at the consultation stage.

Projekt ustawy o zmianie ustawy o podatku dochodowym od osób prawnych

On 29 August 2025, the bill amending the CIT Act and the Act on the Tax on Certain Financial Institutions was published. The bill provides for increasing the CIT rate for banks and decreasing the tax on certain financial institutions. According to the bill, starting from 2028 the target CIT rate for banks is to be set at 23% (instead of the current 19%). In turn, in 2026-2027, the CIT rate for banks would amount to 30 and 26% respectively. A reduction in the tax on certain financial institutions (commonly referred to as the bank tax) was also proposed. The tax would be decreased by 10% in 2027 and by 20% (compared to 2025) starting from 2028, to stimulate lending. The provisions introducing higher CIT rates for banks are scheduled to enter into force on 1 January 2026, while the provisions providing for a reduction of the tax on certain financial institutions are set to take effect on 1 January 2027. The bill is currently at the consultation stage.

Projekt ustawy o zmianie ustawy o podatku dochodowym od osób prawnych oraz ustawy o podatku od niektórych instytucji finansowych

On 26 August 2025, preliminary remarks to the bill amending the Act on Social Insurance System and certain other acts were added to the list of legislative work and policies of the Council of Ministers. The primary goal thereof is to enable the Social Insurance Institution (ZUS) to prepare draft insurance documents, which would then be approved by the contribution remitter. The bill provides, among other measures, for the introduction of a single insurance file (Polish: Jednolity Plik Ubezpieczeniowy, JPU), which will compile data and information concerning both the contribution remitter and the insured person, to be submitted by the contribution remitter via eZUS electronic platform (PUE ZUS). The amendments will also allow contribution remitters to transmit to ZUS the data contained in the JPU. The changes are to be implemented in stages: as of 1 January 2028, for individuals settling contributions for their own insurance, and as of 1 January 2031, for all other contribution remitters. The bill is expected to be passed by the Council of Ministers in Q1 2026.

Założenia do projektu ustawy o zmianie ustawy o systemie ubezpieczeń społecznych oraz niektórych innych ustaw

On 26 August 2025, the key assumptions for the draft resolution on the adoption of a national strategy to combat money laundering and terrorist financing were added to the list of legislative work and policies of the Council of Ministers. The proposed resolution focuses on strengthening and enhancing the effectiveness of activities and analyses conducted by financial analysis units, including the Minister of Finance and Economy as the supreme authority, the General Inspector of Financial Information, and cooperating bodies, in line with a risk-based approach, bolstering AML/CFT frameworks within obliged institutions by addressing identified risks, providing expert support, as well as introducing amendments to domestic laws. The bill is expected to be passed by the Council of Ministers in Q4 2025.

Założenia do projektu uchwały Rady Ministrów w sprawie przyjęcia strategii przeciwdziałania praniu pieniędzy oraz finansowaniu terroryzmu

On 29 August 2025, a general ruling of the Minister of Finance and Economy on the application of Article 116 of the Polish Tax Code in relation to the judgments of the Court of Justice of the European Union (CJEU) in cases C-277/24 (Adjak) and C-278/24 (Genzyński) (ref no. DTS2.8012.5.2025) was published. The interpretation set out in the general ruling applies in all cases, regardless of the type of tax in which the company’s tax arrears arose for which a management board member may be held liable. In particular, the general ruling clarifies that:

1. an effective challenge by a management board member of the findings or legal qualifications certified in the tax assessment decision issued against the company does not automatically result in the invalidation of that decision, nor does it, in particular, justify declaring the decision null and void or reopening the relevant proceedings,
2. the right of a management board member to access the files of the tax assessment proceedings conducted against the company should be ensured to the extent necessary to enable the member to effectively challenge the factual and legal findings affecting the existence and amount of the tax liability,
3. a circumstance releasing a management board member from liability for the company’s tax arrears is the mere submission of a petition for bankruptcy, not the effectiveness of such a petition.

Interpretacja Ogólna Nr DTS2.8012.5.2025 Ministra Finansów i Gospodarki z dnia 29 sierpnia 2025 r. w sprawie w sprawie stosowania art. 116 ustawy – Ordynacja podatkowa w związku z wyrokami Trybunału Sprawiedliwości Unii Europejskiej z dnia 27 lutego 2025 r. w sprawie C-277/24 (Adjak) oraz z dnia 30 kwietnia 2025 r. w sprawie C-278/24 (Genzyński)- Ministerstwo Finansów - Portal Gov.pl

On 22 August 2025, a clearance opinion dated 24 July 2025 (ref. DKP2.8082.5.2024) was published concerning a sequence of activities involving a family foundation, including, among others, the transformation of a limited joint-stock partnership into a general partnership, the establishment of a family foundation, and the conduct of sole proprietorship activities by the founder using the enterprise of the dissolved general partnership. The Head of the National Revenue Administration found that although some tax benefits may arise (including, among others, the non-arising of PIT, CIT, and retail sales tax liabilities), obtaining such benefits was not the main or one of the main purposes of the actions undertaken, and the applicants’ conduct was not artificial (the objectives of securing succession and the foundation’s long-term plans were met, and the principal motive was economic in nature). At the same time, in the view of the authority, some of the tax benefits achieved (specifically those related to the transformation of the limited joint-stock partnership into a general partnership and its subsequent liquidation) may be considered contrary to the provisions or purpose of the law. Consequently, Article 119a(1) of the Tax Code was found to have no application to the tax benefits presented by the applicant. As a result, the Head of the National Revenue Administration issued a clearance opinion.

Opinia zabezpieczająca w zakresie zespołu czynności z wykorzystaniem fundacji rodzinnej

In its judgment of 13 August 2025 (case file II FSK 1510/22), the Supreme Administrative Court held that the exemption from withholding tax referred to in Article 22(4) of the CIT Act does not require verification of whether the dividend recipient is its beneficial owner within the meaning of Article 4a(29) of the CIT Act. According to the Court, with respect to dividends, the remitter is required, while exercising due diligence, to verify only those conditions expressly listed in Article 22(4)–(4d) of the CIT Act. The legislator, therefore, does not impose an obligation on the remitter to verify whether the company receiving the dividends is their beneficial owner. Moreover, the Court noted that Article 22c of the CIT Act (i.e., the clause allowing for the denial of the dividend exemption) is addressed to the tax authorities, not to remitters.

In its judgment of 27 August 2025 (case files II FSK 30/23, II FSK 31/23 and II FSK 32/23), the Supreme Administrative Court held that the refusal to issue an opinion on the application of a tax preference is not governed by the general rules set out in the Tax Code, but rather by the appropriate application, and only to the extent indicated in Article 26b(9) of the CIT Act , of those provisions of the Tax Code expressly referenced therein. In such proceedings, the burden of demonstrating the circumstances justifying exemption from withholding tax rests with the applicant. At the same time, apart from the circumstances specified in Article 26b(3(1) of the CIT Act, the existence of reasonable grounds is sufficient to justify a refusal to issue an opinion. Moreover, the Court emphasized that the fact that the authority does not issue an opinion in such a case does not preclude the taxpayer from benefiting from the exemption referred to in Articles 21 and 22 of the CIT Act.