The Polish parliament is currently working on a government draft amendment to the Inheritance and Gift Tax Act, the second this year (2025). It introduces changes that are expected for a long time and are very beneficial to taxpayers in terms of determining the date on which the tax obligation arises, calculating the deadline for filing a tax return, and the possibility of restoring it. The draft is part of the so-called deregulation package.

Deregulation in installments: another amendment to the Inheritance and Gift Tax Act drafted in 2025

Although there is an amendment to the Inheritance and Gift Tax Act that came into force earlier this year (more precisely, on August 20) (we had the opportunity to discuss its assumptions on our blog: https://lexplorers.pl/zmiany-w-podatku-od-spadkow-i-darowizn-opodatkowanie-renty-w-meandrach-deregulacji/), in mid-October, another government bill on changes in the taxation of inheritance and gifts was submitted to the Polish parliament. Like the previous amendment, it is part of the deregulation package.

The changes introduced by the amendment are mainly procedural in nature—they are aimed at adjusting the deadlines for the fulfillment of the obligations of heirs (donees) under tax law to the sequence of legal events that occur under civil law and to the general rules of tax proceedings. As a result of these discrepancies, taxpayers were at risk of failing to comply with formalities and, consequently, incurring tax liabilities that would hinder the succession of both private assets and property used in family businesses.

Changes in inheritance and gift tax: restoration of the deadline will be possible

As is widely known, heirs belonging to the so-called tax group I are exempt from inheritance and gift tax, provided that they report the acquisition of the inheritance to the head of the tax office within 6 months from the date on which the tax obligation arose. Under the current legal framework, this deadline is treated as material and therefore, in the absence of a provision allowing for its restoration, one that cannot be restored by the authority. Therefore, if the heir (donee) does not submit the relevant declaration to the head of the tax office, they must pay inheritance and gift tax, in principle, with no exceptions in any circumstances.

It is planned to introduce the possibility of restoring the deadline for submitting a declaration of inheritance to the head of the tax office. The deadline may be restored if the taxpayer proves that the failure was not his fault.

Date of tax liability for inheritance and gift tax

The area in which the discrepancy between the provisions of the Inheritance and Gift Tax Act and the provisions of civil law is most evident is the date on which the tax obligation arises. Under the current legal regime, the tax obligation arises upon acceptance of the inheritance (Article 6(1)(1) of the Inheritance and Gift Tax Act).  In the justification for the amendment, the drafters point to a significant drawback of the adopted solution: pursuant to Article 1015 § 2 of the Civil Code, failure to submit a declaration of acceptance of inheritance by the heir is tantamount to acceptance of inheritance with the benefit of inventory. The practical consequence in such a case will be the creation of a tax liability at a time when the testator himself may not be aware of it. Lack of awareness of the date from which the taxpayer is to count the deadline for submitting the declaration to the head of the tax office makes it impossible for him to fulfill his obligations, exposing him to criminal tax liability.

The change in the moment when tax liability arises is intended to eliminate this risk. With the entry into force of the amendment to the Inheritance and Gift Tax Act, Article 6(1)(1) of that Act will read as follows: The tax obligation arises upon acquisition by inheritance– at the moment when the court decision confirming the acquisition of the inheritance becomes final, the certificate of inheritance is registered or the European Certificate of Succession is issued. Regardless of eliminating the practical problems associated with the acceptance of inheritance as a result of the so-called silence of the heir, the proposed amendment will bring benefits to taxpayers: they will have more time to submit a declaration of inheritance to the tax authorities.

It is worth noting that under the new legal regime, the registration of a certificate of inheritance within the meaning of the Act also includes the issuance of a document confirming the acquisition of inheritance by a non-judicial authority of a foreign country, if in that country the acquisition of inheritance is confirmed by such an authority.

Inheritance and gift tax: key dates

The amendment to Article 17a of the Inheritance and Gift Tax Act is intended to bring the law into line with the new rules for determining the moment when the tax obligation arises, as well as with the latest case law of the Supreme Administrative Court (III FPS 2/25). It modifies the deadlines by which taxpayers will be required to file their tax returns as follows:

• taxpayers are required to submit a tax return on the acquisition of property or property rights to the competent head of the tax office in accordance with the established form within one month from the date on which the tax obligation arose (also in the case of a written confirmation of failure to report the acquisition of inheritance for taxation purposes).
• if the heirs from tax group I fail to report the acquisition of property or property rights within 6 months from the date on which the tax obligation arose, the deadline for filing a tax return is one month from the date of expiry of that deadline, and in the case of a taxpayer’s application for the restoration of the deadline for filing the return, one month from the date on which the decision to refuse to restore the deadline became final.

It should be added that the change in the calculation of the deadline for filing a tax return does not mean that heirs in tax group I (spouse, descendants, ascendants, stepchildren, siblings, stepfather, and stepmother) will have more time to take advantage of the inheritance and gift tax exemption. If the inheritance is not reported to the tax authorities (or if a final decision is made to refuse to restore the deadline), a tax liability will arise; however, the right to exemption will be retained if the deadline is restored.

Inheritance of a business and inheritance and gift tax: what will change?

The proposed changes concerning the calculation of deadlines for filing tax returns and their restoration also apply to the acquisition of a business or a share in a business by inheritance or specific bequest. It should be recalled here that, pursuant to Article 4b(1) of the Inheritance and Gift Tax Act, the acquisition by inheritance or specific bequest of ownership of a natural person’s enterprise or a share therein is exempt from tax, provided that:

• the acquirer reports the acquisition of ownership of the enterprise or a share therein to the competent head of the tax office within 6 months from the date of the court’s decision confirming the acquisition of the inheritance becoming final, the registration of the certificate of inheritance, or the issuance of a European Certificate of Succession;
• the purchaser runs the enterprise for at least 2 years from the date of its acquisition.

When do the new regulations may come into force?

As a rule, the provisions of the amended Inheritance and Gift Tax Act will enter into force 14 days after their announcement. There are exceptions to this rule:

• the deadline may also be restored in relation to the acquisition of an inheritance or gift that took place before the amendment came into force, but for which the deadline for filing a tax return has not yet expired as of the date of entry into force of the Act amending the Inheritance and Gift Tax Act;
• the amended provisions regulating the tax liability will apply to the acquisition of ownership of property or property rights by inheritance, in the case of which the court decision confirming the acquisition of inheritance, the registration of the certificate of inheritance, the issuance of a European Certificate of Succession or the issuance of a document confirming the acquisition of inheritance by a foreign authority other than a court became final on or after the date of entry into force of the amendments to the Inheritance and Gift Tax Act;
• with regard to the deadline for filing a tax return, the new act will apply if the tax obligation arises after it enters into force.

Not just inheritance and gift tax: succession of a family business

The changes resulting from the proposed amendment that are beneficial to taxpayers concern obligations of a purely administrative nature (although with effects on the amount of tax liability). However, planning the succession of a family business goes beyond the context of the correct application of inheritance and gift tax regulations. Succession planning should also include business and civil law measures to ensure a smooth transition in the company, taking into account the effects of these measures on other taxes.