Poland: Proposed tax system reform; other tax developments
Recent developments include a proposed overhaul of key tax rules, guidance on Pillar Two top-up taxes, and SAC decisions involving VAT and corporate income tax.
august 25, 2026
The KPMG member firm in Poland prepared an August 2026 report summarizing recent tax developments, including:
- Proposed tax system reform: Preliminary remarks to the proposed bill introducing changes to the tax system, which would become effective in 2027, were published on August 20, 2026. The proposed bill would increase the second individual (personal) income tax (PIT) bracket from PLN 120,000 to PLN 130,000, with income between PLN 130,000 and PLN 150,000 subject to a new 24% rate. Taxpayers with income exceeding PLN 150,000 would be subject to a 32% rate. The proposals would also include an increase in the corporate income tax (CIT) rate from 19% to 22% for entities with annual income above €50 million and for tax groups, a rise in the solidarity levy to 5%, and a reduction of the revenue threshold for lump-sum taxation to €250,000.
- Exclusion of pay-and-refund mechanism: Draft regulations would extend, until December 31, 2028, the period during which so-called intermediary remitters are exempt from applying the pay-and-refund mechanism. Intermediary remitters include operators of securities accounts and omnibus accounts, as well as issuers. The draft regulations are currently being assessed, and the new provisions would become effective on December 31, 2026.
- Opinion on top-up taxation: The Director of the National Revenue Information Service on August 13, 2026, published an opinion concerning the recognition of a deferred tax asset (related to a special economic zone (SEZ)) for the purposes of calculating the domestic top-up tax. The Director confirmed that a deferred tax asset arising from a tax exemption in a special economic zone may be considered when calculating the effective tax rate in the first year in which the Pillar Two rules apply, as well as in subsequent years. Income earned in the zone is not excluded from qualifying income, and an SEZ permit and its extension do not constitute a transaction or government agreement that would restrict recognition of the deferred tax asset. A CIT adjustment for 2023, recognized in the accounts in 2025, does not constitute a qualifying tax for 2025 and does not affect the effective tax rate for that year.
- Supreme Administrative Court decisions: The Supreme Administrative Court (SAC) on August 12 and 13, 2026, issued decisions concerning various tax matters, holding that:
- The primary designation of land in local plan determines VAT exemption
- Barter transactions with influencers are subject to VAT under general rules
- Holidays and sick leave count towards total working time for innovative employees relief
- Duration of mutual guarantees does not determine their equivalence