Poland: Updated draft of proposed corporate income tax amendments; other tax developments

The KPMG member firm in Poland prepared an August 2026 report summarizing recent tax developments, including:

• Updated draft of proposed corporate income tax amendments: The government on August 10, 2026, published an updated draft of proposed corporate income tax (CIT) amendments, which would become effective on January 1, 2027. The proposed amendments include (1) the removal of the option to change depreciation rates after the annual tax return filing deadline, (2) clarification of the tax consequences of performance in lieu of fulfillment (datio in solutum), (3) changes concerning tax-deductible costs for the disposal of shares in a company formed as a result of a transformation, (4) reinstatement of the rule excluding the amortization of goodwill arising in connection with accepting an enterprise or its organized part for use against payment, and (5) amendments to the rules for Estonian CIT hidden profits.
• VAT deduction allowed for corporate events including family members: The Supreme Administrative Court (SAC) on August 7, 2026, held that a company may deduct VAT on expenditures incurred for team-building events and competitions even when employees' family members participate. The court stated that when the main purpose of the initiative is to build staff loyalty, improve morale, and shape a positive image of the employer, the expenditure may have an indirect link with the company's taxable business activity.
• VAT on corporate events is deductible for employees and their families: The SAC on August 7, 2026, held that a company is entitled to deduct VAT on expenditures for corporate events related to employees and their families. The court stated that the link to taxable activities for other participants, such as representatives of local government, requires additional analysis of the factual circumstances.
• Railway Fund monies not exempt from corporate income tax: The SAC on August 6, 2026, held that funds received by a railway infrastructure manager from the Railway Fund do not qualify for the CIT exemption. The court emphasized that because the Railway Fund is neither the state budget nor a local authority budget, the monies received do not constitute a state budget subsidy.