Since January 1, 2019, Poland has implemented the Mandatory Disclosure Rules (MDR) regime, based on EU Directive 2018/822 (DAC6). This regime requires the reporting of certain tax arrangements to the Head of the National Revenue Administration (KAS).
What must be reported?
A tax arrangement that meets at least one of the “hallmarks” defined in the Tax Ordinance must be reported. These hallmarks include:
- General hallmarks – e.g., confidentiality clauses, success-based fees, standardized arrangements.
- Specific hallmarks – e.g., loss-making arrangements, conversion of income categories, circular transactions.
- Cross-border hallmarks – e.g., deductible cross-border payments, transfer pricing arrangements, structures exploiting differences between tax systems.
Who must report?
The primary reporting obligation falls on the “promoter” – typically a tax advisor, lawyer, or accountant who designs or offers the arrangement. If the promoter is bound by professional secrecy, the obligation shifts to the “beneficiary” (the taxpayer). In certain cases, the “supporter” (person assisting with implementation) may also have reporting obligations.
Penalties
Failure to report carries significant penalties under the Fiscal Criminal Code: fines up to 720 daily rates (potentially several million PLN) and in extreme cases, imprisonment. The penalties apply to individuals who fail to file the report, not to the entity.
Practical implications
The MDR regime has fundamentally changed the landscape of tax advisory in Poland. Every tax arrangement must now be analyzed through the MDR lens, and many previously routine structures may trigger reporting obligations. This has increased compliance costs but also transparency.
Paweł Osiński
Attorney, expert in tax law and compliance