Poland: Package of tax legislation passed by lower house of Parliament; other tax developments

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

• Package of tax legislation passed by Sejm: The lower house of Parliament (Sejm) on October 22, 2026, passed a package of tax legislation providing for:
  • Restrictions on access to lump-sum income tax
  • Increase in corporate income tax rate to 22% for tax groups and taxpayers with revenue exceeding the equivalent of €50 million
  • Increase in the solidarity levy from 4% to 5%
  • Changes concerning Estonian CIT, depreciation, family foundations, and transactions with related parties
  • Extension of relief for robotization until 2036, and repeal of expansion and internet relief
  • Increase in excise duty on alcohol and application of 23% VAT rate to selected non-alcoholic and energy drinks
• Council of Ministers approves legislation deferring application of penalties related to KSeF: The Council of Ministers approved legislation that would:
  • Defer application of financial penalties for errors relating to the national e-invoicing system (KSeF) until December 31, 2027
  • Extend the VAT reverse-charge mechanism for gas supplied through the gas system, electricity, and services involving the transfer of greenhouse gas emission allowances until June 30, 2030
• Standalone financial statements may provide basis for country-by-country (CbC) reporting safe harbor: The Director of the National Revenue Information Service on October 19, 2026, issued an opinion (ref. 0111-KDGB.480.6.2026.2.TŁ) that standalone financial statements may constitute qualifying financial statements for purposes of the transitional CbC reporting safe harbor under the top-up tax rules.
• Taxpayer cannot deduct input VAT for nontaxable financial services provided to foreign entities: The Supreme Administrative Court (SAC) held (I FSK 2247/23) that a taxpayer providing financial services to foreign entities which, by virtue of their place of supply, are not subject to VAT in Poland cannot validly opt to waive the VAT exemption provided for in Article 43(22) of the VAT Act and thereby treat those services as hypothetically taxable in Poland for purposes of deducting input VAT under Article 86(8)(1) of the VAT Act.