Poland: Senate passes amendments to cash individual income tax scheme and succession law; other tax developments

The KPMG member firm in Poland has prepared a Weekly Tax Review covering the following recent tax developments:

• Amendments passed by Senate
  • Revenue threshold for cash personal income tax (PIT) scheme increased from PLN 1 million to PLN 2 million (effective January 1, 2026)
  • Special rules for tax-deductible costs in share/securities redemption (effective January 1, 2026)
  • Succession law changes: New rules for notification deadlines and tax obligation timing (effective 14 days after promulgation)
  • These acts now await presidential approval.
• Clearance opinions
  • Acquisition of subsidiary: Tax benefits (e.g., no corporate income tax (CIT) liability) deemed ancillary to group reorganization
  • Redemption of shares and Estonian corporate income tax: Tax benefits (absence/deferral of PIT/CIT liabilities) are main purpose but do not contravene tax law
• Supreme Administrative Court (SAC) decisions
  • Railway infrastructure: Real estate tax exemption applies only to parts of property forming railway infrastructure
  • Bad debt relief (VAT): Time limit for bad debt relief under value added tax (VAT) law is consistent with EU law
  • Excise duty proof: VAT invoice from non-excise taxpayer cannot serve as proof of excise duty payment
  • Investment expenses: For public aid, expenses are considered incurred at time of payment (cash method)
• CJEU judgment
  • National law allowing joint/several VAT liability for third parties is consistent with EU law, if the liable party knew or should have known the tax would not be paid