Poland: Proposed windfall profits tax on liquid fuels referred to Constitutional Tribunal; other tax developments
Referral based on concerns about retroactive effect of proposed windfall profits tax
august 4, 2026
The KPMG member firm in Poland prepared a July 2026 report summarizing recent tax developments, including:
- President refers proposed windfall profits tax on liquid fuels legislation to Constitutional Tribunal: The president has referred the proposed legislation introducing a 60% tax on windfall profits from the disposal of liquid fuels between March and December 2026 to the Constitutional Tribunal for preventive review. The president indicated that his primary concern relates to the retroactive effect of the legislation.
- Maximum real estate tax rates to increase in 2027: A notice sets out the maximum rates of local taxes and charges for 2027, which will serve as the limit when municipalities determine local real estate tax. Under the notice, the maximum tax rate on buildings used for business purposes would rise to PLN 36.49 per square meter, and the limit for land used for business purposes would increase to PLN 1.49 per square meter.
- Architect's MBA tuition not deductible as business expense: The Provincial Administrative Court in Bydgoszcz on July 28, 2026, held that postgraduate MBA tuition incurred by an architect conducting a sole-proprietor business does not constitute a tax-deductible expense when the taxpayer fails to demonstrate an objective causal link to income generation.
- Interest on refinancing loan for share acquisition may be deductible: The Provincial Administrative Court in Warsaw on July 29, 2026, held that corporate income tax (CIT) rules excluding debt financing costs from tax-deductible expenses apply only when they relate to a loan granted directly for the acquisition of shares, and not when related to financing costs incurred on the repayment of such a loan, nor on subsequent loans refinancing earlier liabilities.
- Interest on shareholder loans not automatically hidden profit: The Provincial Administrative Court in Warsaw on July 29, 2026, held that interest or commission payments on loans granted to a company subject to Estonian CIT by its shareholders do not automatically constitute income from hidden profits. The Court held that when such loans are granted on arm's-length terms with genuine economic justification, there is no basis for treating the payments as hidden profit.