Important amendments to tax statutes passed by Sejm and Senate
During the session held on 25-27 February, the Lower House of the Polish Parliament passed several statutes providing for, inter alia:
- exemption for certain categories of entities from filing sustainability statements (for 2025 and 2026) presenting companies’ impact in such areas as environment or corporate governance – new regulations enter into force on the day following promulgation (Druk nr 2277).
- removal of red tape for non-public closed-end investment funds (CEFs), including the obligation to register CEF investment certificates with the National Securities Depository – new regulations are to enter into force 14 days after promulgation (Druk nr 2163);
The acts now move to the Upper House of the Polish Parliament.
Furthermore, the Sejm approved the Senate’s amendments to the act providing for, inter alia, establishing of Financial Instrument for Enhanced Security SAFE as a distinct financial instrument managed by the Bank Gospodarstwa Krajowego, as well as the introduction of measures enabling the effective use of funds obtained from SAFE loans – new regulations enter into force on the day following promulgation (Druk nr 2227). The Act now moves to the President.
Simplified rules for new category of entities – small “mid-cap” companies – announced
Last week, the European Parliament (EP) voted to endorse proposals introducing the concept of small mid-cap enterprises (SMCs). According to the MEPs proposal, SMCs would be defined as companies with fewer than 1,000 employees; and either up to EUR 200 million in turnover or up to EUR 172 million in total assets. The goal of the proposal, being a part of the Omnibus package on simplification, is to reduce the administrative burden for entities that are too big to use simplifications for SMEs, but too small to be able to meet the obligations set for larger entities. This would include lighter record-keeping obligations for data protection purposes, better access to capital markets, and support for critical infrastructure entities. Once the mandates have been endorsed by the EP plenary (planned for March 2026), negotiations with the Council can begin.
Simplified rules for small “mid-cap” companies | News | European Parliament
Amendments to tax on civil law transactions and local taxes and fees announced
Last week, preliminary remarks to the bill introducing amendments to the tax on civil law transactions (PCC), and local taxes and fees regime were released. The bill provides, among other things, for an increase in the threshold for exemption from tax on civil law transactions on the sale of movable property from PLN 1,000 to PLN 3,000. It also allows a local or spa fee to be levied regardless of the purpose of the stay, i.e., links those fees to the use of hotel services, exempts persons with a severe disability and their accompanying assistants from those fees, and replaces collection by way of tax collection agents with an obligation on remitters to collect the fees, imposed on entities providing hotel services.
Summary of government’s deregulation activities
In February, a press conference was held, during which a summary of deregulation activities and a relevant report were presented. According to the report, last year, the Government’s Deregulation Team examined a total of 522 deregulation proposals, of which 354 were approved for implementation. 193 changes have already been implemented and 126 have entered into force. Eighteen proposals did not enter into force because of vetoes by the President of the Republic of Poland. It was also indicated that work is still ongoing on 161 draft amendments. In addition, a further stage – “Deregulation 2.0” – was announced. The report (in Polish) can be accessed here.
Deregulacja 2.0 - systemowe upraszczanie przepisów
SAC: expenditure financed from profits generated in years preceding election of Estonian CIT regime is not subject to Estonian CIT
In its judgment of 26 February (case file II FSK 733/23), the Supreme Administrative Court held that only profits generated during the period in which the taxpayer applied the Estonian CIT regime are subject to this form of taxation. Consequently, expenditure financed from profits generated in the years preceding election of the Estonian CIT regime is not subject to Estonian CIT.
SAC: sale of real estate never used in business activity does not generate revenue from non-agricultural business activity
In the past week, the Supreme Administrative Court issued a judgment (case file II FSK 734/23) holding that the sale of real estate which has never been used for the purposes of a business activity does not constitute revenue from the source referred to in Article 10(1)(3) of the PIT Act, i.e., income from non-agricultural business activity. Furthermore, in the case at hand, in view of the passage of time, the Court found that the condition referred to in Article 10(1)(8)(a) and (c) of the PIT had been met, resulting in the exclusion from taxation of revenue from the sale of the real estate.
EU General Court: association providing services to its members is VAT payer
In its judgment of 25 February (case T-575/24), the General Court held that an association providing telematics services and related supplies of computer equipment to its members, in the context of a conferral of management, is a VAT payer. According to the General Court, there are no grounds for distinguishing between the members of the association according to their status for VAT purposes, provided that services are supplied for consideration and that the association carries out, independently, an economic activity. Furthermore, the General Court noted that a national tax practice leading to those supplies of services being analysed as self-supplies of services performed by the members of the commissioning association is not such as to call into question that association’s liability to VAT.
General Court’s judgment of 25 February 2026, case T-575/24
EU General Court: conditions for imposing VAT on Intra-Community acquisitions
According to the judgment entered by the EU General Court on 25 February in case T-638/24, national legislation which applies VAT to an intra-Community acquisition in the Member State in which dispatch or transport of the goods began, on the ground that the person acquiring the goods made that acquisition under the VAT identification number issued by that Member State, where such an acquisition results from an intra-Community supply exempt from VAT for which there is a tax liability in that Member State, as a result of VAT having been incorrectly invoiced for that supply, is compatible with EU law.