A German parent company with consolidated revenues above EUR 750 million discovers its Polish subsidiary has an effective tax rate of 11 percent. Under Pillar Two, that gap triggers a top-up tax collected at group level. The Polish entity now faces urgent compliance obligations it may not have anticipated.

Pillar Two – the global minimum tax framework – applies in Poland from 1 January 2025. Polish subsidiaries of in-scope groups must calculate their effective tax rate under the Income Inclusion Rule and, where that rate falls below 15 percent, report the shortfall. The Ministry of Finance implemented the framework through amendments to Polish tax legislation, aligning domestic rules with the OECD model and the EU Minimum Tax Directive. Groups with annual consolidated revenues of at least EUR 750 million in at least two of the four preceding fiscal years fall within scope.

This alert covers three things: who is affected and from when, what the effective tax rate calculation requires in a Polish context, and which actions must be taken before the first reporting deadline. The window for preparation is shorter than most finance teams assume.

Who is affected – and does the EUR 750 million threshold apply to you?

The EUR 750 million revenue threshold mirrors the Country-by-Country Reporting (CbCR) threshold already familiar to transfer pricing teams. Polish subsidiaries of qualifying multinational groups are in scope regardless of their own size. A Polish entity with PLN 20 million in annual turnover is fully subject to Pillar Two obligations if its ultimate parent crosses the group threshold.

The rules apply to both inbound structures – foreign parents with Polish subsidiaries – and outbound structures where a Polish company is the ultimate parent. The National Court Register (KRS) filing does not itself trigger or exempt an entity; group-level revenues determine scope. Polish entities should confirm their group's status with the ultimate parent's finance function immediately. Waiting for a formal notification from the parent is a common mistake that forfeits preparation time.

Two safe-harbour provisions reduce compliance burden for some entities. The transitional Country-by-Country Reporting safe harbour allows groups to use CbCR data to demonstrate a sufficient effective tax rate for the first three fiscal years (2024–2026). The de minimis safe harbour excludes jurisdictions where the group's average revenue is below EUR 10 million and average profit is below EUR 1 million. Polish subsidiaries operating in low-margin, high-revenue sectors – manufacturing, logistics, shared services – are unlikely to benefit from the de minimis exclusion.

  • Confirm group consolidated revenues for the four preceding fiscal years
  • Identify whether the transitional CbCR safe harbour applies
  • Map all Polish entities within the group structure
  • Assess effective tax rate at Polish jurisdiction level using GloBE rules

What does the effective tax rate calculation require in Poland?

The GloBE effective tax rate is not the statutory CIT rate of 19 percent. It is calculated as covered taxes divided by GloBE income, using specific adjustments that diverge from Polish accounting and tax rules. Deferred tax assets, IP Box regimes, and R&D super-deductions all affect the calculation in ways that are not obvious from a standard CIT return.

IP Box income – taxed at 5 percent under Polish tax law – is a particular pressure point. Where IP Box generates a significant share of Polish-source income, the effective GloBE rate for the Polish jurisdiction may fall well below 15 percent even if the group's overall Polish tax position looks healthy. We advised a technology client in Małopolska (winter 2025) whose IP Box position reduced its GloBE effective rate to 8.4 percent, triggering a top-up liability that had not appeared in any prior tax planning scenario.

Transfer pricing adjustments also interact with GloBE calculations. If the Polish entity's taxable income is reduced through intercompany pricing, covered taxes fall proportionally. Polish transfer pricing documentation – prepared under the ustawa o podatku dochodowym od osób prawnych (Corporate Income Tax Act, CIT Act) – must now be reviewed through a GloBE lens as well. The Polish Financial Supervision Authority (KNF) does not directly oversee Pillar Two, but regulated entities such as insurance subsidiaries face additional complexity where KNF-required reserves affect GloBE income figures.

For a broader view of how Polish tax compliance obligations are stacking up in 2025 and 2026 – including KSeF and JPK_CIT – see our Polish tax practice overview. Groups managing multiple compliance streams simultaneously face real resource constraints. Pillar Two cannot be treated as a standalone project.

What immediate steps must Polish subsidiaries take?

The first GloBE information return for fiscal year 2025 is due 15 months after the close of the fiscal year – meaning 31 March 2027 for calendar-year groups. That deadline sounds distant. It is not. The data collection, GloBE income calculation, and covered-taxes analysis require months of preparation, and many Polish subsidiaries lack the internal capacity to run the process without external support.

We assisted a manufacturing group in the Mazowieckie region (spring 2026) in identifying a PLN 3.4 million top-up tax exposure that had been overlooked in the group's initial Pillar Two scoping exercise. The exposure arose from a combination of IP Box income and a deferred tax asset reversal. Early identification allowed the group to restructure the IP Box arrangement before the end of the fiscal year, reducing the liability to zero. Acting after the year-end would have forfeited that option entirely.

Three actions should be completed before the end of Q2 2026. First, run a jurisdiction-level GloBE effective tax rate model for Poland using 2024 data as a baseline. Second, assess whether the transitional CbCR safe harbour applies and document the analysis formally. Third, assign internal ownership for the GloBE information return – this is not a task that can be delegated to the CIT compliance team without additional training or external support.

Polish subsidiaries with exposure to KSeF obligations in the same period should also note the interaction between e-invoicing data and GloBE income calculations. Accurate invoice data fed into the Krajowy System e-Faktur (National e-Invoice System, KSeF) will underpin GloBE revenue figures. For cross-border groups managing KSeF timelines, see our alert on KSeF deadlines for companies in Germany. Separately, groups assessing total employment costs in Poland – relevant to GloBE payroll-based substance carve-outs – should review our analysis of minimum wage changes and employer costs in 2026.

Failing to file the GloBE information return on time, or filing with material errors, exposes the Polish entity to penalties under Polish tax legislation. Personal liability of board members for tax obligations is a live risk where the management board has been informed of the exposure and failed to act.

What to prepare before Q3 2026:

  • GloBE effective tax rate model for Poland (2024 base year)
  • Transitional safe harbour eligibility assessment with written documentation
  • Review of IP Box and R&D positions through a GloBE lens
  • Internal ownership assignment for the GloBE information return
  • Coordination with the group's ultimate parent on data-sharing protocols

Your group's Pillar Two exposure in Poland depends on specific facts that a general scoping exercise will not capture. Delaying the jurisdiction-level analysis until late 2026 forfeits restructuring options that are only available before the fiscal year closes.

To receive an expert assessment of your Polish subsidiary's Pillar Two position, contact info@kordeckipartners.com.

Frequently asked questions

Q: Does Pillar Two apply if the Polish subsidiary itself has revenues below EUR 750 million?

A: Yes. The threshold is measured at the level of the ultimate parent's consolidated group revenues, not at the level of the individual Polish entity. A Polish subsidiary of any size is in scope if the group crosses EUR 750 million in at least two of the four preceding fiscal years.

Q: How does IP Box interact with the GloBE effective tax rate calculation?

A: IP Box income taxed at 5 percent under Polish tax law reduces covered taxes relative to GloBE income, which can push the jurisdiction-level effective rate well below the 15 percent minimum. Groups with material IP Box positions should model the GloBE impact before the end of the fiscal year, as restructuring options are not available retrospectively. This is one of the most common misconceptions – that a compliant IP Box regime is automatically safe under Pillar Two.

Q: When is the first GloBE information return due for a Polish subsidiary?

A: For groups with a calendar fiscal year, the first GloBE information return covering fiscal year 2025 is due by 31 March 2027. However, the underlying data collection and effective tax rate analysis must begin well in advance. Groups that have not started the process by mid-2026 risk being unable to meet the deadline without material errors.

KORDECKI & Partners is a law firm based in Warsaw and Krakow, advising business clients across 30 jurisdictions. Our team combines expertise in Polish and international law with a practical approach to tax compliance, Pillar Two implementation, transfer pricing, and KSeF onboarding. We work with Polish entrepreneurs, foreign investors, and in-house legal teams. To discuss your situation, contact info@kordeckipartners.com.

Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. KORDECKI & Partners assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@kordeckipartners.com.