Newsletter

On July 23, 2026, another version of the draft law amending the PIT Act and the CIT Act (UD116) was published. The draft was submitted to the Standing Committee of the Council of Ministers. Compared to the original version dated September 16, 2025, its scope has been significantly reduced.

A significant portion of the anti-abuse measures has been removed from the draft. At the same time, several clarifying amendments have been retained, and the draft has been supplemented with new regulations—including an unfavorable exclusion from tax-deductible expenses of the refinancing costs of certain capital transactions.

1. Changes Removed from the Draft

The following provisions announced in the original draft are not included in the current version:

Donations of movable property after lease buyout – the extension of the period during which the sale by an immediate family member of property received from a business would be subject to personal income tax (PIT) from 6 months to 3 years was abandoned.

Incentive programs – Provisions providing for the reclassification of income from the exercise or disposal of financial instruments and property rights to the source under which the taxpayer received the original benefit have been removed.

Liquidation of a transparent partnership following reorganization – The proposal to tax assets received by partners in the event of the liquidation of a partnership within 3 years of the reorganization of a partnership that is a CIT taxpayer has been withdrawn.

Datio in solutum – A specific provision defining revenue from the transfer of real property, a property right, or an item to settle a liability has been removed from the draft.

Housing tax credit – Restrictions regarding the ownership of other real estate and the repeated use of the tax credit within short time intervals have been eliminated.

Cost upon the sale of shares in a company formed through reorganization – Provisions requiring the recognition of historical expenses related to the acquisition or subscription of shares in the reorganized company have been withdrawn.

Depreciation in real estate companies – The extension of the depreciation restriction to real estate recognized on the balance sheet as investments has been removed.

Amortization of goodwill – The option to amortize goodwill arising from the acquisition of a business or a ZCP for use under a finance lease has been retained.

Change in depreciation rates – Restrictions on increasing and decreasing rates have been eliminated, including the deadline linked to the filing of the annual tax return.

Redemption of shares and reduction of their par value – Specific rules for determining costs in the event of a reduction in the value of shares without their legal cancellation have been removed.IP Box – The requirement to employ at least 3 people as a condition for applying the 5% rate has been withdrawn.Solidarity Levy and IP Box – Income taxed under the IP Box was ultimately not included in the base for the solidarity levy.Definition of a small taxpayer and a business starter – The proportional calculation of the revenue limit for a year shorter or longer than 12 months has been removed, as has the definition excluding entities continuing another’s business or a ZCP from the preferential treatment.Minimum CIT – The increase in the simplified tax base to 5% of revenue for taxpayers with revenue exceeding EUR 50 million and the reduction of the profitability review period from 3 to 2 years were withdrawn.Hidden profits in Estonian CIT – the planned expansion of the definition has been removed, including the elimination of the requirement that a benefit be linked to the right to share in profits and the specific list of benefits provided to shareholders and related entities.Lump-sum tax on recorded revenue – the draft no longer includes the law on the lump-sum tax. Therefore, the 17% rate for certain services provided to related parties will not be introduced under UD116.

2. Changes That Remain in the Draft

Safe Harbor for Loans

• Variable interest rate – the safe harbor is to cover loans whose interest rate is based on a base rate and a margin and is updated at least once every 3 months.
• Time of determining the terms – the type of base rate and the margin amount will be determined in accordance with the announcement by the Minister of Finance in effect as of the date the agreement is concluded.

Solidarity Levy – Ability to Offset Losses

• Losses from Previous Years – the ability to reduce the income included in the solidarity levy base by losses from the same source of income has been retained.
• IP Box outside the tax base – unlike in the previous version, income from the IP Box is not to be subject to the levy.

3. New and Significantly Modified Provisions

The proposed regulations include, among others:

Exclusion of refinancing costs for capital transactions from the tax-deductible costs

Subsequent financing—The proposed changes are intended to extend the restrictions under Article 16(1)(13e) and (13f) to the costs of subsequent debt financing incurred to repay financing intended for the capital transactions specified in those provisions.

Refinancing and consolidation – the restriction will apply to refinancing, the consolidation of multiple liabilities, and the multi-stage replacement of prior debt with subsequent financing.

Mixed financing – if the funds are also allocated to other purposes, the portion of costs excluded from the tax-deductible costs will be determined proportionally based on the amount of principal attributable to the purposes subject to the restriction.

Indexation of funds in so-called “dormant accounts”

• Source of income – Statutory indexation of funds held in bank accounts and SKOK members’ accounts is to constitute income from monetary capital.
• Time of revenue recognition – revenue is to be recognized on the date the indexation amount is credited to the account and is subject to a 19% flat-rate personal income tax (PIT).

Limit on vehicle-related expenses – documenting CO₂ emissions

• Additional evidence – to apply the PLN 150,000 limit for emissions below 50 g CO₂/km, not only data from CEPiK but also a Certificate of Conformity (CoC) or a document issued or recognized by the Director of Technical Transport Supervision is considered sufficient.
• No data in CEPiK – a taxpayer will not lose the higher limit solely because emissions data has not been disclosed in the central vehicle registry.

Expansion of CIT Exemptions

• Non-governmental organizations – Section 17(1)(4) of the CIT Act is to refer to the list of public tasks set forth in Article 4 of the Act on Public Benefit Activity and Volunteer Work. The exemption will cover income allocated to these purposes, subject to the other statutory conditions.
• Bank Gospodarstwa Krajowego – The exemption is to cover certain BGK revenues related to the management of entrusted funds and to the sale or redemption of Treasury bonds received to increase the statutory fund.

Minimum CIT – New Industry-Specific Exemptions

• Energy and Heat – The exemption from the minimum CIT is intended to cover taxpayers whose low profitability results from the sale of electricity, heat, or piped gas.
• Coking and Metallurgy – A similar exemption is provided for activities in the processing of coking coal and metallurgy.

4. What does the draft mean for taxpayers?

Lower risk of changes starting in 2027 – most of the previously announced tightening measures in the areas of restructuring, depreciation, the IP Box, the housing tax credit, and the lump-sum tax have been removed.

New financing risks – the most significant new change for corporate groups may be the exclusion from the tax-deductible costs of subsequent refinancing of capital transactions.

Some changes will apply to prior periods – taxpayers should verify the effects of regulations concerning bonds, account indexation, and CO₂ emissions reporting, for which earlier effective dates have been set.

The proposed changes may significantly impact taxpayers’ tax returns and should be taken into account when planning financing, reorganizations, and the choice of tax regime for future years.

We offer support in analyzing the impact of the planned changes on the operations of individual organizations, reviewing financing structures, and providing ongoing tax advisory services.

We hope you find the above information helpful. If you have any questions or concerns, please do not hesitate to contact us.