Newsletter

Dear Readers,

In the September edition of our newsletter, we present the most important changes to the taxation of family foundations that the Ministry of Finance plans to implement starting January 1, 2026. Additionally, we highlight the upcoming simplifications for taxpayers undergoing tax audits as of October 1, as well as recent favorable administrative court rulings for employers regarding employee accommodation and transport for business purposes. Finally, we provide information on the level of the minimum wage in 2026.

Enjoy your read,

WBW Team

Changes in the Taxation of Family Foundations

Sebastian Michalak, Associate

Daria Pawlak, Associate

At the end of August, the Ministry of Finance published the first draft of the long-announced amendment concerning the taxation of family foundations. The planned changes cover four key areas: the introduction of a 3-year lock-up period for the sale of family foundation assets, the application of the CFC regime and taxation of tax-transparent structures, taxation of property rental for purposes other than long-term residential lease, and the expansion of the catalogue of hidden profits. The proposed changes are expected to come into effect in 2026, with one important caveat.

3-Year “Lock-up” Period Effective from August 31, 2025

Under the current legal framework, the sale of assets contributed to a family foundation as part of its permitted activities is not subject to any statutory holding period. However, the draft amendment proposes a 3-year lock-up period, calculated from the end of the year in which the foundation acquired the asset, during which the disposal of such assets will result in income being subject to corporate income tax.

Importantly, although the amendment is scheduled to take effect on January 1, 2026, the lock-up period will apply to any assets contributed to family foundations after August 31, 2025 — several months before the amendment formally enters into force.

CFC Regime, Taxation of Transparent Structures, and Exit Tax

Another significant change is the inclusion of family foundations under the CFC regime (Controlled Foreign Corporation), as provided in Article 24a of the CIT Act. This will result in income earned by the family foundation from participation in foreign tax-transparent entities (e.g., U.S. Limited Liability Companies or Luxembourgish Special Limited Partnerships) being subject to a 19% corporate income tax. Similar provisions will apply to income from domestic tax-transparent entities.

Additionally, the application of the CFC regime to family foundations will trigger the applicability of Article 24f of the CIT Act concerning the exit tax.

Rental of Residential Properties

Another important change is the significant restriction of permitted activities of family foundations related to the rental of residential buildings and premises. The draft explicitly prohibits short-term rental operations by family foundations. It also introduces a general exclusion from tax exemption for the rental of residential buildings or premises unless they are exclusively used for long-term residential rental purposes. Crucially, the burden of proof that the property is rented solely for residential purposes will rest with the family foundation.

Hidden Profits from Loans

The fourth noteworthy change for founders and beneficial owners is the expansion of the personal scope of loans granted by a family foundation, which are treated as hidden profits under Article 24q(1a) of the CIT Act. The list of borrowers (beyond beneficiaries) will now include the founder and any individual related to the beneficiary, founder, or the foundation itself.

In addition to the value of the loans granted, amounts of remitted, time-barred, or written-off uncollectible loans to such entities will also be treated as hidden profits.

Amendments to the National Revenue Administration Act

Antonina Godlewska, paralegal

On October 1, 2025, significant changes to the National Revenue Administration Act will come into force. The amendment introduces new taxpayer rights regarding the submission of corrections and overdue declarations after the conclusion of customs and tax audits.

Current Legal Framework

Currently, within 14 days of receiving the authorization to conduct a customs and tax audit, the taxpayer has the right to correct the tax return within the scope covered by the audit. The regulations do not allow for the submission of overdue declarations — only corrections are permitted. After the audit concludes, taxpayers may only file corrections that fully reflect the findings of the audit.

Changes Effective from October 1, 2025

Under the new rules, taxpayers will be able to submit overdue declarations both within 14 days from receiving the authorization to conduct the audit and within 14 days from receiving the audit findings. Significantly, it will also be permissible to file a partial correction that includes only selected findings made by the customs and tax authorities.

In practice, this means that taxpayers will no longer be forced to either fully accept all audit findings or dispute everything. It will be possible to agree with the authority on some matters while continuing to dispute others, without the risk of criminal or fiscal liability for the accepted part.

Benefits for Taxpayers

The new provisions provide taxpayers with greater flexibility through the option of partial corrections and allow for declarations to be filed after the audit begins or ends. The law also introduces reduced VAT penalties (up to 15%) for voluntary compliance. Furthermore, full acceptance of the audit findings may prevent the initiation of formal proceedings, reducing costs. These changes are intended to foster greater trust and cooperation between businesses and the National Revenue Administration.

Application of New Regulations

The new rules will also apply to audits initiated and concluded before October 1, 2025, if the 14-day deadline for correction falls after this date.

Free Accommodation and Transport for Business Purposes and the Tax Treatment of Employee Benefits

Sebastian Michalak, associate

In recent months, administrative courts have issued additional favorable rulings for both employers and employees, reaffirming that the value of accommodation and transport provided by a company for the performance of work duties does not constitute taxable income for the employee.

In particular, attention should be drawn to the ruling of the Wrocław Voivodeship Administrative Court (WSA) dated July 17, 2025 (ref. no. I SA/Wr 181/25), which confirmed that in the case of delegated employees working in another EU country, the value of in-kind benefits and reimbursement of expenses for travel, meals, and accommodation are not considered part of their remuneration and are therefore not subject to personal income tax. A similar view was expressed by the Poznań WSA in a ruling dated September 11, 2025 (ref. no. I SA/Po 331/25).

These rulings are consistent with the established case law of the Supreme Administrative Court (e.g., rulings from August 1, 2023, ref. II FSK 270/21, and January 9, 2024, ref. II FSK 434/21). Although this is not expressly stated in the judgments, it appears that employers should also not deduct social security contributions from the value of such free accommodation and transport.

Increase in Minimum Wage and Minimum Hourly Rate in 2026

Sebastian Michalak, associate

According to the Regulation of the Council of Ministers dated September 11, 2025, on the minimum wage and the minimum hourly rate for 2026, as of January 1, 2026, the minimum gross monthly wage for full-time work will be PLN 4,806, representing an increase of PLN 140 compared to the current minimum wage.

As for the minimum hourly rate, it will increase by PLN 0.90 to PLN 31.40 per hour starting from January 1, 2026.