New draft amendment to the Tax Ordinance – key changes and implications for taxpayers

On 4 August 2025, the Ministry of Finance published a new draft amendment to the Tax Ordinance. This continues the work on changes to tax regulations that began in March 2025. What changes to the Tax Ordinance does the latest draft amendment provide? We have selected some of the most significant changes for taxpayers. 

Some positive proposals…

The project includes several good proposals that deserve special attention.

1. Elimination of the controversial provision on suspending the limitation period in the case of initiating penal fiscal proceedings (Article 70 § 6 point 1)

For many years, this provision was a gateway for tax authorities to artificially extend the limitation period for a tax liability, which in practice gave more time to question the taxpayer’s settlement and issue a decision determining the tax liability.

According to the regulations, it was sufficient to initiate penal fiscal proceedings related to a potential underpayment, which automatically suspended the limitation period for that obligation. This provision was very often used instrumentally by tax authorities, which initiated penal fiscal proceedings in the last months before the expiry of the standard limitation period.

For years, administrative courts, academics, and taxpayers have challenged the validity of this provision. It was the subject of several Constitutional Court complaints, numerous rulings, a Supreme Administrative Court (NSA) resolution, and a recent signaling decision sent to the Minister of Finance.

For this reason, the repeal of Article 70 § 6 point 1 of the Tax Ordinance should be assessed very positively. According to the latest proposal, the initiation of penal fiscal proceedings will no longer suspend the limitation period.

2. Removal of the obligation to report domestic tax schemes (MDR)

Currently, Polish regulations on tax schemes are complicated and often lead to reporting of standard business activities or reporting ‘just in case’. The explanations to the regulations issued in January 2019 did not improve the situation – they left many ambiguities and contradictions with the content of the Act.

At the same time, violation of the obligation to report tax schemes was subject to high penalties under the Fiscal Penal Code (one of the highest in the EU).

For this reason, there have long been calls to remove national regulations on tax schemes and retain only those directly arising from the DAC6 directive.

3. Increase of the payment limit on behalf of a taxpayer to PLN 5,000

Currently, the Tax Ordinance allows for the possibility of paying the tax by persons other than the taxpayer. Such a payment can be made by three groups:

• close family members – regardless of the amount,
• the current owner of a tax lien or a compulsory mortgage, if the tax has been secured in this form – regardless of the amount,
• any other entity – if the tax amount does not exceed PLN 1 thousand.

The amendment provides for an increase in the limit to PLN 5,000 for the last group.

This is definitely a positive change that can make taxpayers’ lives easier. In addition to adjusting the limit to the current economic reality (the provision came into force in 2016 and has not been amended so far), the provisions of the Tax Ordinance will also be harmonized with the Act on Administrative Enforcement Proceedings.

4. Increase of the limit for correcting declarations ex officio to PLN 10,000

The limit will also be increased for corrections made directly by the tax authority.

Currently, tax authorities may make such corrections ex officio if the change in the ‘declaration outcome’ does not exceed PLN 5,000. 

The proposal of the Ministry of Finance assumes increasing this limit to PLN 10,000, which should be assessed positively, especially taking into account the change in the value of money over time and inflation indicators.  

5. Removal of the obligation to file an application for a declaration of overpayment in a situation where the overpayment results from a correction of the declaration

Currently, when a taxpayer corrects a declaration that increases an overpayment, they must submit an overpayment claim.

The existing regulations, although not very harmful, can be burdensome. The lack of the obligation to submit such an application may be a significant simplification for taxpayers (the submission of the declaration itself will be sufficient). Moreover, the introduction of this provision should not limit the right of taxpayers to submit additional explanations to the submitted correction of the tax return.

6. Other taxpayer-friendly changes include:
   • introducing the possibility of remitting tax before the payment deadline (and thus before it becomes a tax arrear),
   • clarification of the issue of interest on refunds and overpayments,
   • introduction of interest for overpayments resulting from reliance on an individual interpretation, which was subsequently changed, repealed or declared expired,
   • the possibility for a general power of attorney to be revoked directly by the attorney.

… but also many negative

However, not all of the proposed changes are beneficial for taxpayers, and some even raise very serious doubts.

1. Extension of the limitation period for a tax liability by 12 months – in the case of submitting a declaration correction reducing the tax to be paid (increasing the tax refund or loss) in the last 12 months before the limitation period expires

Each subsequent correction will also extend the limitation period by another year.

Such a proposal deserves unequivocal criticism – not only because of the limitation of taxpayers’ rights, but also because of its imprecise wording, which may lead to many disputes between taxpayers and tax authorities in the future.

In our opinion, this provision leads to an unjustified imbalance between the rights of taxpayers and tax authorities. Already today, the tax authority has the ability to verify the correctness of a declaration submitted before the limitation period expires.

2. Restriction of serving documents to attorneys at the address indicated in the power of attorney only for deliveries made in the traditional form

This proposal increases chaos in document delivery in tax proceedings. Uner current rules, if an attorney is appointed in the case, documents are delivered to the address in the power of attorney.

Recently, the Ministry of Finance has taken the position that documents should be served primarily through the e-Urząd Skarbowy (e-Tax Office), even if the power of attorney specifies a different address. Such an interpretation of the provisions was criticized first by representatives of the doctrine, and then also (when disputes with taxpayers arose) by administrative courts.

The change proposed by the Ministry of Finance is not very precise and may even be read in such a way that documents served electronically can be executed without the attorney appointed in the case.

3. Introduction of a new prerequisite for suspending the limitation period when initiating proceedings regarding the application of the GAAR clause (general anti-avoidance rule)

The amendment introduces another, additional prerequisite for suspending the limitation period for a tax liability.

The suspension will be limited to 2 years, after which the limitation period continues.

4. Repeal of the limitation on prosecutability of fiscal crimes

Repealing this provision means that even if a tax liability becomes time-barred and authorities cannot enforce it, there will be no obstacle to initiating penal fiscal proceedings in relation to that tax obligation.

What does this mean for taxpayers?

First of all – the very good news is the end of the instrumental use of penal fiscal proceedings. However, not everything is moving in the right direction.

The draft amendment to the Tax Ordinance is a partially awaited response to long-standing demands. In addition to abolishing instrumental penal fiscal proceedings, the removal of domestic tax scheme reporting is also welcome. Yet there are also controversial solutions, particularly attempts to circumvent procedural guarantees for taxpayers through changes in prosecutability of fiscal crimes.

It is worth analyzing today how these planned changes may affect the functioning of the business and prepare for them accordingly. The Act is scheduled to enter into force on 1 July 2026.