new provisions

Liquidation of branches of foreign undertakings—proposed amendments

Under proposed changes, the procedure for liquidation of branches of foreign undertakings would become easier and would also comply with EU law. Thus after several years of uncertainty and disagreement on this topic, Polish law should return to the position approved by the Supreme Court in 2007.

From 2018 income of management board members to be taxed at 18% and 32%

Under a proposed amendment to the Personal Income Tax Act, from 1 January 2018 the compensation of management board members will be taxed at regular rates (18%/32%), whether paid in cash or bonuses in the form of derivatives of financial instruments or other property rights.

New Water Law—a revolution in water management

One of the most anticipated acts in the environmental arena has now been adopted: the new Water Law. This statute with 570 articles enters into force on 1 January 2018 and will fundamentally change the rules for water management in Poland.

Restrictions on investor’s joint and several liability

The joint and several liability of the investor on a construction project for the fees of the subcontractors under Polish law is particularly strict. Thus owners of construction projects should note the statutory solutions (recourse claims by investors and limitations in subject matter and amount introduced in the amended Civil Code) and the permissible use of contractual clauses to soften this liability regime.

Mediation in administrative proceedings

Public administration is typically associated with authoritative decisions that can be modified only by challenging them through the administrative courts. A recently adopted amendment to the Administrative Procedure Code is designed to soften this image and make the state’s executive authority more citizen-friendly.

European administrative cooperation

Poland’s amended Administrative Procedure Code includes a new chapter governing the conduct of European administrative cooperation.