The amendment updates corporate tax rules to comply with European Court of Justice rulings, extending benefits to non-EU funds while maintaining protections against abuse.
Poland’s lower house of parliament (Sejm) approved an amendment to the Corporate Income Tax (CIT) Act to align national tax rules with European Court of Justice rulings on the taxation of investment and pension funds on 6 November 2025.
The amendment expands tax benefits to non-EU funds while preserving safeguards against misuse of the exemption.
Currently, Polish investment and pension funds enjoy CIT exemptions, subject to some restrictions, including limitations on real estate investments. Similar tax benefits have been available to EU and European Economic Area (EEA) funds that meet specific conditions, such as being under proper supervision and managed by external, licensed entities. These funds can receive exemptions from Polish withholding tax (WHT) on income, such as dividends from Polish companies.
To prevent misuse of these WHT exemptions for tax avoidance, the amendment introduces safeguards. These include allowing tax authorities to access data on Polish residents with accounts in foreign funds, denying exemptions for artificial structures, and requiring proper authorisation for fund management.
The upper house of parliament (Senate) approved the bill on 7 November 2025, and it was sent to the president to sign the Act into law on the same day.
The updated regulations are set to take effect on 1 January 2026. Earlier, Poland’s Council of Ministers adopted a draft amendment to the country’s Corporate Income Tax (CIT) Act on 14 October 2025.
