A revolution in the limitation of tax liabilities - the end of "waiting out" cases
On 21 May 2026, the Senate adopted a package of acts amending the Tax Ordinance, which introduce fundamental changes to the way the limitation period for tax liabilities is calculated. One of the acts - the one concerning limitation periods - has already been sent to the President for signature. For taxpayers, this means the need to re-analyse their tax strategies, and for those suspected of fraud - considerably less room for manoeuvre.
Under the new rules, the five-year limitation period in cases concerning undisclosed income will be counted from the end of the year following the year in which the tax liability arose. In practice, this means that if a tax liability arises in 2026, the tax authorities will have until the end of 2032 to issue a tax decision. This is a significant extension of the real window in which the tax authorities can enforce payment.
Another key change is the abolition of the mechanism suspending the limitation period solely on the basis of the initiation of fiscal criminal proceedings. The previous practice was widely criticised by business owners and legal experts, who pointed out that the tax authorities instrumentally initiated fiscal criminal proceedings merely to artificially extend the time available to pursue tax arrears. Once the new rules enter into force, the mere initiation of fiscal criminal proceedings will no longer be enough to stop the limitation period from running.
New rules on suspending limitation periods and mortgage security
However, the amendment introduces a new, precisely defined mechanism for suspending the limitation period. In cases concerning tax avoidance, the limitation period may be suspended from the date on which tax proceedings are initiated or taken over by the Head of the National Revenue Administration. This means that those suspected of deliberately avoiding tax will not be able to count on their case "sitting" in the office until the limitation period expires.
Significant changes also apply to tax mortgages and tax liens. Until now, tax liabilities secured in this way practically never became time-barred, which raised serious constitutional doubts. The new rules introduce a mechanism for suspending the limitation period after a mortgage or tax lien has been established, provided that the taxpayer is properly notified.
For business owners and individuals who own property encumbered by a compulsory mortgage in favour of the State Treasury, this change is of great practical importance. There is finally a realistic prospect of closing cases that have so far dragged on for years with no real chance of becoming time-barred. In such situations, it is worth consulting a lawyer to assess how the new rules will affect your specific tax position.
Local tax rulings in one database and the abolition of the MDR obligation
The second amendment adopted by the Senate is an act introducing a single nationwide database of tax rulings issued by local government authorities. Rulings issued by village heads, mayors and city presidents concerning local taxes - including property tax, agricultural tax and local charges - will be published in the Eureka Customs and Tax Information system run by the National Revenue Administration.
Until now, taxpayers have had to search the Public Information Bulletins of individual municipalities, which was time-consuming and made it difficult to compare the positions of different authorities. The new solution will significantly improve access to information and allow faster verification of how individual local authorities interpret tax rules. This act will return to the Sejm with a Senate amendment and, once it has completed the full legislative process, will enter into force three months after publication.
The end of reporting domestic tax schemes under MDR
The third of the adopted acts abolishes the obligation to report domestic tax schemes (MDR) in respect of VAT and excise duty. This change results from the fact that Polish rules went beyond EU requirements in this area, imposing additional administrative burdens on taxpayers and tax advisers. The amendment also includes a number of further simplifications:
- Clarification of the rules for calculating tax deadlines - including where the deadline falls on a Saturday or a public holiday
- The option to waive tax before its payment date - a new mechanism that makes it easier to manage liabilities
- Abolition of the obligation to file a separate application to confirm an overpayment - where the overpayment results from a corrected tax return
- Raising the limit for corrections to returns made by the tax authorities as part of verification activities - from PLN 5,000 to PLN 10,000
- Increasing the amount of tax that can be paid by a third party - from PLN 1,000 to PLN 5,000
- Simplification of decisions on local taxes - offices will be able to issue decisions on property, agricultural and forest tax on the basis of the data they hold, without formally initiating proceedings
The new rules under this act are due to enter into force on 1 October 2026, which gives taxpayers and their advisers several months to prepare for the changes.
What do the changes to the Tax Ordinance mean in practice for taxpayers?
The package of adopted acts is one of the most important reforms of the Tax Ordinance in recent years. On the one hand, the state gains more effective tools to combat tax fraud and tax avoidance - longer real limitation periods and new grounds for suspending the limitation period in cases involving aggressive tax planning. On the other hand, taxpayers receive real simplifications: easier access to tax rulings, less bureaucracy linked to MDR reporting, and more flexible rules for correcting returns and settling overpayments.
Particular attention should be paid to the transitional provisions, which may be crucial for tax cases that are already pending. Taxpayers who are subject to proceedings or whose liabilities are secured by a compulsory mortgage should analyse as soon as possible how the new regulations will affect their legal position. Business owners who have so far used tax schemes subject to the MDR obligation should also check whether the change in the rules requires their internal compliance procedures to be updated.
If you are unsure how the new tax rules will affect your situation - contact our firm. Our tax law specialists will help you analyse the consequences of the changes to the Tax Ordinance, assess the risks related to the limitation of liabilities and adapt your tax strategy to the new regulations. Do not wait for the rules to enter into force - prepare now.
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