Poland Issues a Draft Law to Implement OECD Administrative Guidance

On February 13, 2026, Poland issued a draft law to amend its Global Minimum Tax Law for the June 2024 and January 2025 OECD Administrative Guidance. This also includes QDMTT changes, including amendments to the Local Financial Accounting Standard rule.

The aim of the draft law is to ensure Poland’s implementation remains consistent with OECD Guidance, specifically:

• Administrative Guidance (June 2024) – addressing (among other items) (i) differences between GloBE and accounting values, (ii) allocation of head office taxes to PEs, (iii) deferred tax assets and allocation of deferred taxes for tax allocation purposes, and (iv) allocations involving intermediate entities (tax transparent/hybrid structures).

• Administrative Guidance (January 2025) – focusing on Article 9.1 (transition rules / DTAs), particularly restrictions for DTAs arising from certain reliefs/arrangements.

• GloBE Information Return (January 2025) – including a transitional simplified jurisdictional reporting framework.

• QDMTT/QDMTT Safe Harbour Changes

The draft law is planned to enter into force on May 1, 2026. However, certain provisions (specifically around reporting elections/procedure and accounting standard relief) are expressly applied to fiscal years starting after December 31, 2023.

June 2024 Administrative Guidance

Regimes with no CIT

The draft law provides that tax transparency is deemed not to exist in jurisdictions that have not introduced CIT or a similar qualified tax.

This reflects the June 2024 OECD guidance so that transparency is assessed only in jurisdictions with a CIT/qualified tax regime against which the owner is actually picking up the entity’s income and taxes. Jurisdictions with no CIT are therefore treated as non transparent for this purpose.

Reference Entity/qualified owner mechanics

The draft law replaces “owner” with “qualified owner” in key sections and introduces a definition that tracks the June 2024 Reference Entity approach in the OECD Guidance (evaluating transparency from the perspective of the first non transparent owner in the chain.

The aim is for taxes to be allocated to the same entity to which net accounting income is allocated under the GloBE rules, to avoid ETR mismatches in multi- tier transparent chains.

Consequential allocation rules

The draft law then provides follow on changes to:

• allocation of income from tax transparent entities (Article 75);

• allocation of taxes recorded at the transparent entity and/or recorded under other owners’ CFC rules (Article 93(1)(2)(b) and Article 93(2));

• clarifications for when non group owners hold through flow through UPE structures (Article 73(2)).

Cross border allocations: PEs 

The draft law adds Article 72(5), requiring that when determining the relevant PE loss, taxpayers must first take into account the head office jurisdiction’s rules for determining PE income, including foreign tax credit mechanics.

This links this directly to the June 2024 OECD guidance discussing how PE losses are taken into account by the head office under Model Rule 3.4.5, including cases where a head office’s FTC system nets PE losses against income of other PEs.

Current tax allocation under cross crediting: Article 93(3)–(6) rewritten into a structured mechanism

The draft law replaces Article 93 and introduces a structured process for allocating covered taxes where a jurisdiction allows cross crediting of foreign taxes across baskets/sources and blends foreign and domestic income for credit limitation purposes.

This applies the method in the June 2024 OECD Administrative Guidance to compute foreign source income relevant to FTC the limitation:

1. compute the amount of covered taxes eligible for allocation to foreign source income;

2. compute allocation keys per source/category;

3. allocate taxes based on those keys, with separate computations where categories/rates differ.

Deferred tax – GloBE value vs book value differences