CIT Amendment Brings Major Benefits for Tax Capital Groups Starting in 2026
Beginning 1 January 2026, a key amendment to the Polish CIT Act will come into force, eliminating the automatic dissolution of a Tax Capital Group (PGK) in cases where non-arm’s length transactions with related entities are identified. This is a significant and positive change that will strengthen the stability and attractiveness of PGKs in Poland.
Why Were the Previous Regulations So Problematic?
Until the end of 2025, the law states that even the slightest deviation from the arm’s length principle in a transaction with a related entity outside the PGK results in the loss of PGK’s CIT taxpayer status with retroactive effect.
Moreover, according to the judgment of the Supreme Administrative Court of 3 September 2024 (II FSK 815/24), correcting transfer prices later does not reverse this consequence.
In practice, a single non-material transaction could eliminate the entire tax benefit of the PGK.
What Does the CIT Amendment Change?
1. Arm’s Length Principle Remains – Without the Risk of PGK Dissolution
The tax authorities will still assess the arm’s length nature of transactions with related entities outside the PGK.
However, this will no longer trigger automatic dissolution of the group.
2. Retroactive Application
The amendment also covers events occurring before its entry into force, provided that no decision on PGK deregistration has yet been issued.
Impact Assessment – Key Benefits for PGKs
The change is viewed very positively and introduces:
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greater operational stability,
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the possibility to adjust transfer prices without jeopardizing PGK status,
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increased attractiveness of establishing and operating PGKs,
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reduced tax risk for taxpayers.
This reform removes one of the most restrictive conditions previously imposed on PGKs.
What Stays the Same?
Obligations related to transfer pricing documentation and compliance remain unchanged.
Our team has supported numerous clients in this area throughout the year — and we are ready to help further.
Have Questions? We’re Here to Support You
If you need assistance understanding the upcoming CIT changes or structuring your PGK or transfer pricing documentation — reach out to us.