Poland’s Ministry of Finance drastically increases mandatory liability insurance minimums for tax advisors to enhance client protection.
Regulation Update
On Friday, a draft regulation by Poland’s Minister of Finance and Economy was published in the Government Legislation Center regarding mandatory civil liability insurance for entities providing tax advisory services.
Insurance Amount Changes
According to the impact assessment of the draft regulation, most provisions of the current regulation will be maintained. Only the minimum guarantee amount of liability insurance for tax advisors will change from the current minimum of 10,000 euros per insured event.
New Insurance Limits
The draft regulation proposes that the new rates will be at least 50,000 euros for basic tax advisory services. The amounts will be differentiated based on the complexity of organizational structures where tax advisors practice, with a maximum rate of 100,000 euros.
Ministry’s Rationale
The Ministry of Finance argues that the goal is to ensure an appropriate level of protection and security for entities using tax advisory services. They clarified that the minimum guarantee amounts refer to insurance periods not longer than 12 months, aligning with market practices and similar regulations.