Poland: Legislation removing MDR obligations for domestic tax arrangements effective October 1, 2026; other tax developments
Other tax developments include president signing legislation introducing windfall tax on fuel profits
October 6, 2026
The KPMG member firm in Poland prepared an October 2026 report summarizing recent tax developments, including:
- Various tax bills passed by Council of Ministers: The Council of Ministers on September 29, 2026, adopted bills (1) amending the individual (personal) income tax brackets, (2) amending the act on family foundations, (3) increasing the sugar levy, (4) extending robotization relief for an additional 10 years, and (5) amending the rules governing the Polish Investment Zone. The bills are all proposed to become effective January 1, 2027.
- Legislation introducing windfall tax on fuel profits signed by president: The president signed legislation introducing a temporary windfall tax (effective from March 1, 2026, to March 31, 2027) on the extraordinary profits of businesses engaged in the production and trading of fuels imported from abroad, while simultaneously referring the legislation to the Constitutional Tribunal.
- Legislation removing MDR obligations for domestic tax arrangements effective October 1, 2026: Legislation removing the obligation to report domestic tax arrangements under the mandatory disclosure regime (MDR), as well as making other changes to the MDR rules, became effective October 1, 2026.
- Free accommodations for posted workers not subject to individual income tax: The Supreme Administrative Court (SAC) on September 29, 2026, held (II FSK 1259/24) that the provision of free accommodations to employees seconded to work in Poland does not give rise to taxable employment income.
- Delay and termination penalties may be tax deductible: The SAC on September 29, 2026, held (II FSK 1261/23) that contractual penalties for late performance of services and for termination of a contract are not excluded from tax‑deductible costs under Article 23(1)(19) PIT, provided they do not arise from defects in the services or works performed.
- Individual income tax on dividends from Estonian CIT profits must be calculated on full net profit: The SAC on September 29, 2026, held (II FSK 1274/23) that dividends paid out of profits subject to Estonian CIT tax are subject to individual income tax based on the full amount of net profit allocated for distribution to shareholders, with no reduction for the lump‑sum tax on company income paid by the company. The mechanism for eliminating double taxation is applied at the shareholder level.
- Expenses for building terminal on third‑party land not tax deductible: The SAC on September 29, 2026, held (II FSK 1258/23) that expenses incurred for the construction of a fuel terminal on land owned by a third party, incurred to meet a condition imposed by the European Commission as part of a merger approval, did not constitute tax‑deductible costs. The SAC found that the expenses were directly linked to the consolidation process, rather than to generating income or preserving or securing its source.