Updated draft amendment to the Tax Ordinance and certain other acts

2025 / 08 / 27

On 4 August 2025, an updated draft bill amending the Tax Ordinance Act and certain other acts (list number UD196) was published on the website of the Government Legislation Centre (Draft). Although the first version of the draft, as part of the ongoing work, is dated 26 March 2025, the updated version of the draft of 4 August 2025 provides for quite significant changes compared to the original version.

The draft is currently at the consultation stage and has not yet been submitted to the Sejm.

What is going to change?

The draft provides for a number of changes, the most important of which are:

1. Area concerning the limitation period for tax liabilities

Elimination of the grounds for suspension of the limitation period in the case of criminal tax proceedings – the initiation of proceedings for a tax offence or misdemeanour will no longer interrupt the limitation period. This solution is intended to limit the current abuse by tax authorities leading to court disputes due to the instrumental initiation of criminal tax proceedings for the purpose of suspending the limitation period.
Change in the rules governing liabilities secured by a mortgage or tax lien – abolition of the institution of ‘non-expiry’ of such liabilities and its replacement with suspension of the limitation period for the duration of the entry of a compulsory mortgage or tax lien, with the suspension not exceeding 5 years.
New grounds for suspension of the limitation period – this will apply to tax proceedings related to tax avoidance. However, suspension on these grounds may not last longer than 2 years.
Possibility of extending the limitation period by an additional year – in the event of filing a correction to a tax return shortly before the expiry of the limitation period, i.e. less than one year before the end of the limitation period, or when income from undisclosed sources is disclosed.

2. KKS area

Making the expiry of the criminal liability for a fiscal offence independent of the limitation period for the reduced public law liability – the expiry of the criminal liability for a fiscal offence will not depend on the limitation period for the tax liability. As a result, criminal fiscal proceedings may be initiated even if the tax liability has already expired. The proposed amendment therefore makes it possible to pursue reduced public law liabilities in criminal fiscal proceedings with the participation of an authorised prosecutor, rather than under the provisions of the Tax Ordinance or the KAS Act in relation to the taxpayer.

3. MDR

Exclusion of tax schemes from individual interpretations – the draft provides for the inability to submit requests for individual interpretations of the provisions on tax schemes (MDR). The Director of the National Tax Information Service will not be obliged to issue such interpretations.
Restriction of MDR reporting – elimination of the obligation to report domestic tax schemes and removal of specific and general identifying features not included in the directive, which was the basis for the implementation of MDR provisions into the Polish legal system;
Change in the list of entities in MDR – removal of the ‘facilitator’ category. Only “promoter” and ‘user’ will remain, in accordance with the directive.
Signing of MDR-3 information by a proxy – allowing a proxy to sign information on the use of a tax scheme.
Elimination of the obligation to have an MDR procedure – no requirement to have an internal procedure for reporting information on tax schemes.
Changes in KKS sanctions for MDR violations – the changes provide for a reduction in penalties for failure to report information, but also introduce additional sanctions for late reporting.

4. Other selected changes

Increase in the limit for tax payment by a third party – increase in the amount of tax liability from PLN 1,000 to PLN 5,000, up to which it is possible for a party other than the taxpayer to pay the tax.

Tax remission before the payment deadline – introduction of the possibility of remitting tax liability before the payment deadline.

Withdrawal of a request for a refund of overpayment – if the overpayment results from a correction of a tax return or declaration, the taxpayer will not have to submit a separate request.

What does this mean in practice?

The scope of the proposed changes is quite broad. The key changes concern the limitation period and MDR regulations. However, the proposed provisions also address the problem of instrumental initiation of criminal tax proceedings for the purpose of interrupting the limitation period. the exclusion of the cessation of criminal liability under the KKS due to the limitation period for tax liabilities opens up the possibility of pursuing public law claims – formally time-barred – against individuals responsible for tax settlements in the organisation who are liable under the KKS.

It is therefore crucial to analyse internal tax processes and functions within the organisation for the purpose of identifying potential gaps that create potential tax risks, also in the context of KKS liability.

When?

The vast majority of the proposed changes are to come into force on 1 January 2026, with some changes to apply earlier.

Scope of our support

We offer comprehensive tax support, including the review and improvement of tax processes and procedures. We identify risk-generating gaps, implement the necessary changes and create new procedures to effectively manage processes within the organisation.

If you have any questions, please do not hesitate to contact us.

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