Legislative proposal UD196 introduces a comprehensive package of amendments to the Polish Tax Ordinance as well as to the regulations governing the reporting of tax schemes (MDR). The proposed changes focus on simplifying procedures, reducing documentation obligations, and enhancing the predictability of actions taken by tax authorities. The amendments include, inter alia, limitations to MDR reporting, modifications to the statute of limitations rules, procedural simplifications in tax settlements and proceedings, and adjustments to the electronic service system.
With regard to mandatory disclosure rules (MDR), the draft abolishes the obligation to report domestic tax schemes and schemes relating to VAT and excise duties, where such reporting is not required under EU law. Entities bound by professional secrecy—such as advocates, legal advisers, tax advisers, and patent attorneys—will be exempt from reporting obligations, although they will be required to inform their clients of the obligation to submit a report. The amendment also introduces the possibility for authorised representatives to sign MDR forms and reduces the maximum penalties for failure to report a tax scheme.
The draft further provides for an amendment to Article 20b of the Tax Ordinance by increasing to PLN 5,000 the threshold for tax liabilities that may be paid by a third party on behalf of the taxpayer. This solution is intended to facilitate the settlement of minor tax payments, particularly by accounting offices and financial institutions, without requiring the taxpayer’s direct involvement in cases of relatively small liabilities.
One of the most significant changes included in the draft concerns the suspension of the statute of limitations period in the event of the initiation of fiscal penal proceedings. Under the current framework, this mechanism has enabled tax authorities to extend limitation periods by initiating fiscal penal proceedings. The provision linking the limitation of punishability for fiscal offences to the tax statute of limitations is also to be repealed, thereby allowing longer limitation periods to apply to the most serious tax offences. Furthermore, the draft modifies the rules applicable to tax liabilities secured by a mortgage or fiscal pledge: instead of being excluded from limitation, such liabilities will be subject to suspension of the limitation period for the duration of the security, subject to a defined time limit. Additional grounds for suspension of the limitation period are also introduced, including the initiation of proceedings concerning tax avoidance and the submission of a tax return correction less than one year before the expiry of the limitation period.
The amendment also provides for a number of procedural simplifications in tax proceedings. An overpayment resulting from a corrected tax return will be recognised without the need to submit a separate application, thereby accelerating the refund process. The draft further envisages the possibility of remitting a tax liability prior to its due date. Additionally, in the case of local taxes imposed on individuals, tax authorities would be authorised to assess tax liabilities based on data already held, without the need to serve a formal notice initiating proceedings. These solutions are intended to streamline procedures and reduce administrative costs.
A further important element of the draft is the introduction of a mechanism aimed at ensuring uniform interpretation of tax law. The Minister of Finance will be empowered to request the Supreme Administrative Court (Naczelny Sąd Administracyjny) to adopt an abstract resolution in cases involving significant interpretative doubts, thereby promoting consistent application of tax law nationwide.
The draft also aligns the Tax Ordinance with the electronic service system (e-Doręczenia) and the gradual phase-out of the ePUAP platform. Decisions and official correspondence will be served via the new electronic service systems provided for under the electronic service regulations. Amendments will also cover the rules governing powers of attorney.
The new provisions are planned to enter into force on 1 October 2026.