An invoice for company management may seem like a simple optimisation tool, but in practice it often creates significant tax risks. Particular caution is needed where someone combines management functions with services provided to their own company through a sole proprietorship. We recently discussed this issue in a tax commentary published by Prawo.pl.
The punitive 70% severance tax was intended as a tool to limit high severance packages in state-controlled companies. In practice, however, it is applied far more often than it should be—sometimes even to individuals who are not senior managers. What is more, taxpayers who have doubts increasingly cannot obtain a substantive individual tax ruling, because the Head of the National Revenue Information (Director of KIS) refuses to issue it right away. The refusal is justified by an “justified suspicion” of tax avoidance (Article 119a of the Polish Tax Ordinance). In a judgment of 15 October 2025, case no. I SA/Gd 626/25, the Voivodeship Administrative Court (WSA) in Gdańsk criticised this practice.
B2B reclassification into an employment contract – in early January 2026, the government announced that it would not continue the PIP reform aimed at strengthening the “administrative” reclassification of contracts. This does not mean a “green light” for any cooperation model: reclassifying B2B into an employment contract remains a real risk, because it depends mainly on how the work is actually performed in practice (not on what the contract is called).
Online sales tax audits are becoming more frequent, especially with new DAC7 reporting obligations. More and more online sellers are receiving tax authority inquiries. What triggers an audit? How do you declare income from online sales correctly? What thresholds apply, and when do you risk being classified as running a business? In a recent article on Prawo.pl, Piotr Sekulski, PhD, comments on these growing risks.
For some time now, tax authorities have been challenging B2B service arrangements provided by company board members to their own companies (commonly referred to as “invoicing your own company”) as potential aggressive tax planning. We have written about this issue before. The latest judgment of the Supreme Administrative Court (NSA) of November 5, 2024 (case ref. II FSK 996/24), confirms that such practices may raise a justified presumption of tax avoidance.
Does the reclassification of a mandate contract by ZUS create a tax liability? How do the Polish tax authorities approach this issue, and is their interpretation favorable for taxpayers? Recently, the daily Rzeczpospolita published an article featuring a commentary by Piotr Sekulski PhD, a tax advisor, addressing this topic. Reclassification of a Mandate Contract by […]
Prop trading and business activity. Proprietary trading – often called “prop trading” – has gained tremendous popularity in recent years. By allowing traders to operate with someone else’s capital, it removes one of the main barriers to entering financial markets: the lack of sufficient personal funds. That’s why prop trading is such an attractive option for many talented individuals looking to scale their operations. However, alongside the clear benefits, it’s crucial not to overlook the formal and legal aspects — especially when it comes to tax compliance. A key question arises: how should income from prop trading be classified under Polish tax law — as business activity or as income from personally performed services (e.g., under a contract for services)? This distinction has important tax implications. In this article, we explore that relationship — prop trading and business activity — in detail.
Can business activity be classified as a foreign tax establishment in Poland?
Does working remotely in IT create a foreign tax establishment? Could operating from Poland temporarily lead to tax consequences for sole proprietorships? These are the key questions explored in our latest analysis. In a recent article in Gazeta Wyborcza, our experts shared their insights on this topic.
Recently, more updates on tax audits have emerged. How long can they last? What should businesses be cautious about during verification processes? Does a completed audit guarantee safety for the taxpayer? A recent article in Rzeczpospolita features commentary by Piotr Sekulski PhD, shedding light on these questions.
Recently, tax authorities have been increasingly thorough in examining the right to apply the IP Box tax relief. What exactly does an IP Box audit involve? Should you be concerned about tax inspections? Is there a risk that you won’t receive the refund from this relief? Recently, an article containing a comment by Piotr Sekulski, PhD on this topic was published in Prawo.pl.
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Foreign Donation Tax – Does It Apply in Poland? 19 February 2025
