Tax Rulings to Receive Five-Year Validity Period Under Proposed Reform

• The Ministry of Finance plans to introduce a five-year validity period for individual tax rulings.
• Tax advisers warn the measure could reduce long-term taxpayer protection and legal certainty.
• The reform also includes more favourable changes, including extending withholding tax opinions from 36 months to five years.

Extended Article

The Polish Ministry of Finance is proposing significant changes to the country’s advance tax ruling system.

Under the proposal, individual tax rulings would no longer remain valid indefinitely. Instead, they would expire after five years, requiring taxpayers to seek renewed confirmation of their tax position where certainty is still required.

Supporters argue that the change ensures rulings remain aligned with evolving legislation, administrative practices and court decisions. Critics, however, warn that taxpayers may face increased compliance costs and reduced certainty.

The proposal reflects growing concern that historical tax rulings may no longer accurately reflect current tax law. At the same time, advisers note that tax authorities have increasingly challenged structures despite previously issued rulings, raising questions about practical protection levels already available.

One positive element of the reform is the proposed extension of withholding tax opinions from three years to five years, potentially reducing administrative burdens for multinational groups.

Why this matters

• Could significantly change tax certainty strategies.
• May increase the frequency of ruling applications.
• Offers longer protection periods for withholding tax opinions.

Source Prawo