Reportable arrangements – objectives of the DAC6 directive and Polish MDR regulations

Mandatory Disclosure Rules (MDR) require taxpayers to report the so-called tax arrangements to the Head of the Polish National Revenue Administration. Since this concept covers a wide range of activities and transactions undertaken by taxpayers, and given that Polish regulations imposed more extensive reporting obligations than the DAC6 directive until 1 October 2026, businesses should familiarise themselves with the applicable rules and regularly review both their domestic and cross-border transactions. What should taxpayers know about MDR and DAC6 in Poland?

What are the tax arrangement reporting rules (MDR)?

The obligation to provide tax authorities with information on reportable arrangements was introduced by Council Directive (EU) 2018/822 of 25 May 2018, amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements (DAC6).

After the DAC6 directive was implemented into the Polish legal framework, entities meeting the conditions specified therein became obliged to report tax arrangements to the Head of the Polish National Revenue Administration. The Polish MDR reporting regime is set out in Chapter 11a of the Polish Tax Ordinance.

What is the objective of the DAC6 directive?

As stated in the recitals to the DAC6 directive, the tax arrangement reporting rules are intended to improve the functioning of the internal market by discouraging taxpayers from entering into aggressive cross-border tax planning arrangements.

Reporting tax arrangements allows national tax authorities to detect irregularities and potential tax avoidance practices at an earlier stage.

Importantly, the fact that an entity is subject to MDR reporting requirements does not mean that it has engaged in unlawful conduct. The obligation to provide information on reportable arrangements to the Head of the Polish National Revenue Administration may also apply to situations that do not constitute tax avoidance, but rather some legally permissible tax planning.

Since when have entities been required to report tax arrangements to the Polish tax authorities?

Polish MDR regulations, governing the reporting of tax arrangements, entered into force on 1 January 2019. However, in certain cases, the reporting obligation also covers arrangements implemented before that date. This applies where the taxpayer undertook the first step related to the implementation of a tax arrangement:

• after 25 June 2018 – in the case of cross-border tax arrangements,
• after 1 November 2018 – in the case of domestic tax arrangements*.

* Importantly, pursuant to the amendment to the Polish Tax Ordinance regarding MDR regulations, the obligation to report domestic tax arrangements was abolished with effect from 1 October 2026. However, reporting obligations continue to apply to all domestic tax arrangements implemented between 1 November 2018 and 30 September 2026.

Under the Polish regulations, where an entity undertook the first actions related to a tax arrangement, after the dates indicated above, it remains obliged to report that arrangement, even where those actions were taken before the MDR provisions formally entered into force.

The DAC6 directive provides for the same reference date for reporting obligations as the Polish regulations: reporting applies to cross-border arrangements where the first step in their implementation was taken after 25 June 2018. As a general rule, EU Member States were required to apply the provisions of the DAC6 directive from 1 July 2020.

Differences between the provisions of the DAC6 directive and Polish regulations – how did the Polish legislative expand taxpayers' obligations in the field of MDR?

The date of entry into force of the MDR regulations was not the only difference between the Polish framework and the DAC6 directive. Until 1 October 2026, the Polish tax reporting regime was significantly broader than that required under DAC6. 

Prior to the 2026 amendment, the Polish Tax Ordinance Act imposed reporting obligations not only in relation to cross-border tax arrangements, but also domestic tax arrangements, which are not covered by the DAC6 directive.

In addition, MDR reporting in Poland extended beyond direct taxes (such as income taxes), as envisaged under DAC6, and applied to virtually all taxes operating within the Polish tax system, including VAT and real estate tax. The only notable exceptions were customs duties and contributions payable to ZUS (the Social Insurance Institution – Polish: Zakład Ubezpieczeń Społecznych) and PFRON (the State Fund for Rehabilitation of Disabled Persons – Polish: Państwowy Fundusz Rehabilitacji Osób Niepełnosprawnych).

Moreover, the Polish legislative introduced an additional subsequent reporting obligation (MDR-3 reporting) and, unlike the DAC6 directive, incorporated an expanded catalogue of hallmarks into the legislation. The breadth and complexity of these requirements increased the administrative burden on businesses, prompting many companies to seek support from experienced tax advisors with expertise in Polish tax law.

However, the situation changed with the previously mentioned amendment to the Polish Tax Ordinance. With effect from 1 October 2026, the obligation to report domestic tax arrangements was abolished. Furthermore, in order to align the Polish MDR framework more closely with the DAC6 directive, the legislative revised certain definitions and removed selected concepts altogether, including some additional specific hallmarks that had no equivalent under DAC6. In addition, VAT and excise duty were excluded from the scope of MDR reporting requirements.