Individual Tax Rulings in Poland: Compelling the State to Commit
The individual tax ruling represents a remarkable anomaly within the Polish legal framework: a mechanism through which a taxpayer may pose a question to the State and receive an answer that binds the State itself. Where a taxpayer acts in reliance upon such a ruling, adverse consequences cannot follow—even where the ruling subsequently proves erroneous, even where the tax authorities later adopt a contrary position.
This constitutes a powerful instrument of legal protection. And like all powerful instruments, it demands considerable skill in its deployment.
The Protective Mechanism
The statutory foundation is straightforward: Article 14b of the Tax Ordinance Act (Ordynacja podatkowa). The Director of the National Tax Information Office (Dyrektor Krajowej Informacji Skarbowej) issues individual tax rulings upon application by interested parties. Such applications may address factual circumstances already in existence or contemplated future transactions.
In theory, the procedure appears transparent. The applicant describes the relevant circumstances, poses a question, and advances a proposed legal interpretation. The authority evaluates whether the applicant’s position is correct. If so, it confirms. If not, it articulates the correct position with supporting reasoning.
In practice, matters prove considerably more complex.
The Gap Between Doctrine and Practice
The Director maintains a three-month statutory deadline for issuing rulings. Yet the authority possesses an arsenal of procedural devices to circumvent this timeline—or to issue a ruling that resolves nothing of substance.
The authority may demand supplementary information. It may determine that the factual description is insufficiently detailed. It may conclude that the question exceeds the permissible scope of the ruling procedure—perhaps because it touches upon anti-avoidance provisions or abuse of law doctrines. It may issue a ruling so narrowly circumscribed that it fails to address the actual situation that prompted the inquiry.
This is not paranoia—it is quotidian reality. Tax authorities exhibit institutional reluctance to issue tax rulings favorable to taxpayers, as each such ruling constrains their subsequent discretionary latitude. Accordingly, they seek grounds for refusal, for limitation, for preserving interpretive flexibility.
A poorly drafted application—excessively general, excessively detailed, ambiguous at critical junctures—furnishes the authority with pretextual grounds. A well-drafted application—precise, comprehensive, foreclosing avenues of evasion—compels the authority to take a definitive position.
The Art of Interrogation
Drafting an application for an individual tax ruling transcends mere form completion. It constitutes an art—one in which form carries equal significance to substance.
The factual description must be articulated such that the authority cannot credibly assert incomprehension or informational insufficiency. Yet simultaneously, it must contain nothing superfluous—each extraneous detail represents a potential avenue for subsequent challenge should reality diverge even marginally from the description.
The question must be formulated to elicit a useful response. An excessively narrow question yields an answer that fails to encompass relevant variants. An excessively broad question invites an evasive response or outright refusal.
The applicant’s proposed interpretation must be persuasive yet measured. The authority formally evaluates whether the applicant’s position is correct—where it concurs, it need not articulate independent reasoning. A well-constructed interpretive position facilitates the authority’s affirmative response.
This is work in which experience proves determinative. One who has drafted scores of applications and analyzed scores of responses understands where pitfalls lie. One approaching this for the first time enters a minefield blindfolded.
When the Response Proves Unfavorable
A negative ruling—one determining that the applicant’s position is incorrect—does not conclude the matter.
The applicant may challenge the tax ruling before the Regional Administrative Court (Wojewódzki Sąd Administracyjny). The court examines whether the authority correctly applied the law. Where it concludes otherwise, it annuls the ruling and remands for reconsideration.
This is not merely theoretical. Courts regularly annul rulings—sometimes because the authority misapprehended the factual circumstances, sometimes because it misinterpreted the applicable provisions, sometimes because it failed entirely to address the applicant’s arguments.
A complaint requires legal grounds and substantive argumentation. It demands familiarity with jurisprudence—administrative courts consider how analogous matters have been previously resolved. It also demands strategic judgment: sometimes litigation is advisable, sometimes a reformulated application proves superior, sometimes awaiting evolution in interpretive trends represents the optimal course.
The Limits of Protection
Not every question may properly form the subject of an individual tax ruling.
The Director will refuse to issue a ruling where the matter concerns anti-avoidance provisions, measures limiting treaty benefits, or abuse of law under VAT legislation. Refusal likewise follows where the matter is already subject to pending tax audit, customs and fiscal audit, or tax proceedings.
Moreover, since 2016, the authority may refuse to issue a ruling where it harbors “reasonable suspicion” that the described transaction may constitute tax avoidance. This represents an exceptionally broad discretionary gateway, though administrative courts have begun to impose limiting constructions.
Our Practice
We prepare and submit applications for individual tax rulings—with full appreciation that a well-drafted application represents half the battle.
We challenge negative rulings before administrative courts—where the authority has misapplied the law or evaded substantive response.
We advise on whether a ruling constitutes the appropriate instrument—recognizing that alternative mechanisms, including protective opinions, binding rate information, or investment agreements, may sometimes prove superior.
The individual tax ruling offers a pathway to legal certainty in a system that systematically withholds such certainty. But to utilize this instrument effectively, one must understand how to wield it.
Founder and Managing Partner of Skarbiec Law Firm, recognized by Dziennik Gazeta Prawna as one of the best tax advisory firms in Poland (2023, 2024). Legal advisor with 19 years of experience, serving Forbes-listed entrepreneurs and innovative start-ups. One of the most frequently quoted experts on commercial and tax law in the Polish media, regularly publishing in Rzeczpospolita, Gazeta Wyborcza, and Dziennik Gazeta Prawna. Author of the publication “AI Decoding Satoshi Nakamoto. Artificial Intelligence on the Trail of Bitcoin’s Creator” and co-author of the award-winning book “Bezpieczeństwo współczesnej firmy” (Security of a Modern Company). LinkedIn profile: 18 500 followers, 4 million views per year. Awards: 4-time winner of the European Medal, Golden Statuette of the Polish Business Leader, title of “International Tax Planning Law Firm of the Year in Poland.” He specializes in strategic legal consulting, tax planning, and crisis management for business.
