Polish entrepreneurs often express negative views on the quality and consistency of the country’s tax regulations, according to the “Entrepreneurs Under the Tax Microscope 2025” report, published by tax advisory firm MDDP in cooperation with the Lewiatan Confederation. Business owners cite inconsistent interpretations of tax laws and regulatory instability as major obstacles, especially as legal frameworks continue to undergo frequent changes. Key upcoming reforms—such as the implementation of the National e-Invoicing System (KSeF) and real estate tax updates—will affect nearly all businesses.
“Entrepreneurs often encounter situations where different tax offices interpret the same regulation differently. One office may say a rule applies one way, while another applies it completely differently. This is particularly problematic for property tax, where we have 2,600 municipalities and 2,600 tax authorities—so the same building can be taxed differently depending on the location,” explains Przemysław Pruszyński, Director of the Tax Department at the Lewiatan Confederation.
Uncertainty Undermines Legal Clarity and Business Confidence
Even when regulations are complex, businesses can adapt if the rules remain stable. But frequent changes create legal ambiguity, making it hard to interpret laws and predict their impact. Long delays in court rulings only exacerbate this issue.
“Unstable interpretations and long legal processes are major problems. For instance, we often wait over five years for rulings from the Supreme Administrative Court (NSA), and by the time they are issued, the laws may already be outdated,” notes Andrzej Nikończyk, Chair of the Lewiatan Tax Council.
“Business planning requires a high level of predictability, especially when it comes to tax consequences.”
Report Findings: Legal Quality, Not Just Rates, Is the Problem
The MDDP and Lewiatan report highlights that entrepreneurs are not only concerned with tax rates, but also with how laws are written and applied. Businesses want clearer, more consistent rules and more transparent communication from tax authorities.
“Even politically determined tax rates need to be implemented effectively, which is the responsibility of public officials. If a regulation is poorly written or impractical, it creates confusion and compliance issues,” says Nikończyk.
Fortunately, many businesses now actively participate in consultations to shape new laws, and the Ministry of Finance is increasingly open to dialogue. Entrepreneurs hope that better cooperation will lead to practical, enforceable legislation.
Tax System Evaluation Presented at the IX Tax Council Congress
These issues were a central topic at the IX Congress of the Lewiatan Tax Council, where tax experts, business leaders, and public officials gathered to discuss tax law reform and practical challenges. One session was dedicated to the findings of the “Entrepreneurs Under the Tax Microscope 2025” report.
“We analyzed how entrepreneurs view audits and checks conducted by tax authorities,” explains Pruszyński.
“Given the complexity of the tax code, we focused on how business owners perceive their interactions with tax officials, since good relationships can help apply difficult laws correctly.”
Key Legislative Topics for Polish Businesses in 2025
1. Property Tax Reform
A major change introduced this year involves new definitions of buildings and structures for real estate tax purposes. Last year’s Congress discussed what the Ministry’s draft legislation might look like; this year’s event focused on whether the final version is more precise and less open to interpretation.
2. National e-Invoicing System (KSeF)
Set to become mandatory in 2025, the KSeF platform represents a major administrative, IT, and financial challenge. Every business will be required to connect its accounting systems to the Finance Ministry’s servers in order to issue invoices through a centralized gateway.
“Right now, each company uses its own invoicing methods. KSeF will enforce standardization, which means companies will need to implement new software and adapt their internal processes. It’s a major transformation,” says Pruszyński.
“We’re still waiting on the final legal text and technical templates from the Ministry. Once published, businesses will have just over six months to complete implementation.”
3. Deposit-Return System and VAT Implications
Starting in October 2025, a national deposit-return system for beverage containers will be introduced. This will also affect taxation: non-returned bottles will be subject to VAT.
“This raises practical concerns for businesses regarding how VAT is calculated and paid on unreturned packaging,” explains Pruszyński.
Legal Reform: Necessary but Still Imperfect
While efforts are being made to improve Poland’s tax system, entrepreneurs remain skeptical. Many believe that the reforms still add new layers of complexity, especially:
- The need to submit detailed test plans for every new product under tax rules.
- Requirements for reports that could expose trade secrets.
- The obligation to submit a new application and pay additional fees whenever a business adds a new model to a testing permit.
Moreover, the lack of appeal procedures in some regulatory processes—such as real estate tax reassessments—adds to the administrative burden.
Risk of Innovation Flight
Both MDDP’s and Lewiatan’s reports warn that if Poland fails to create a more innovation-friendly legal environment, businesses may take their R&D and investment activities abroad, to countries with clearer and more predictable regulations—like Germany and the Czech Republic, which already rank ahead in this regard.
“Poland’s economy depends not just on large, state-backed projects, but on millions of entrepreneurs employing millions of people. This sector is especially vulnerable to excessive regulation, and we must safeguard it,” concludes Kościński.
Source:
Newseria Business – Report: Entrepreneurs Under the Tax Microscope 2025
MDDP & Lewiatan Confederation
