What’s next for MDR reporting?
After several years of the Tax Scheme Reporting Regulations (MDR), the legislature has prepared an amendment to the Tax Ordinance, which is intended to significantly overhaul the entire reporting system. The announcements primarily include changes to align Polish regulations with EU standards and to reduce obligations that have, for years, raised numerous interpretational questions and generated significant administrative burdens for businesses.
The proposed changes cover the scope of reporting, as well as procedural issues, principles of liability, professional secrecy, and the operation of tax scheme numbers (NSP). The most significant change is the elimination of reporting of domestic tax schemes.
Below we present what we consider to be the most interesting proposed changes:
1. Limiting MDR to cross-border schemes only
The most important change is the limitation of MDR to cross-border schemes only. This means abandoning the obligation to report domestic tax schemes, which previously significantly increased the number of reports submitted to the Head of the National Revenue Administration. These reports were not used analytically by the National Revenue Administration, and at the same time, increased obligations for businesses.
2. Removal of other specific distinguishing features and general distinguishing features not found in EU regulations
The draft also proposes removing “hallmarks” unique to the Polish MDR regulations, which expanded the scope of reporting beyond the EU standard. This includes the requirement of a significant impact on deferred tax and the hypothetical obligation to withhold tax at source.
3. Removal of the “supporter” category
A significant change will be the removal of the “supporter” category. The system will retain the roles of promoter and beneficiary, with definitions to be clarified.
4. Adaptation of the MDR provisions to the case law of the CJEU on professional secrecy
The draft bill aims to align the regulations with the case law of the European Court of Justice. Entities subject to professional secrecy (e.g., attorneys, legal counsels, tax advisors) will not report a scheme if doing so would violate it. In such cases, they will be required to notify the client in writing of the obligation to submit MDR information.
5. Procedural changes regarding the MDR-3 form
The bill envisages filing the MDR-3 form once a year—by the end of the fourth month after the end of the tax year—and the option for the form to be signed by a proxy. The scope of required data will also be limited.
6. Revocation of the MDR-2 form
The amendments will repeal the MDR-2 form, which was previously submitted in cases of a risk of professional secrecy breach. Due to these changes and the elimination of the support category, this form will be deemed redundant.
7. Changes in the scope of fiscal penal liability
The maximum fine for failure to comply with MDR obligations will be reduced from 720 to 240 daily rates, and a separate sanction for late compliance (up to 120 daily rates) will be introduced. Delays in submitting MDR-3 and MDR-4 will also be penalized.
8. Abandoning reporting of VAT and excise tax arrangements in the part not required by EU regulations
9. Repealing the obligation to have an internal MDR procedure
10. Exclusion of the possibility of obtaining individual interpretations in the scope of MDR
Our rating
The proposed changes constitute one of the most significant reforms to the MDR system since its introduction. If the regulations are adopted in their current form, reporting obligations for businesses could be significantly reduced, although MDR will remain an important element of the regulatory compliance system for cross-border arrangements.
Work status
On May 29, 2026, the amendment was submitted for the President’s signature. According to the bill, the effective date of the regulations is October 1, 2026.
Our support
We support clients in the practical application of MDR regulations, including identifying cross-border schemes, assessing identifying characteristics, and assigning appropriate roles. We assist in the preparation and verification of MDR reports (particularly MDR-3), as well as in historical reviews and liaison with tax authorities. Our goal is to mitigate risks and adapt processes to the new reporting rules.
