Poland tax ruling: Bank refunds from annulled loans exempt from inheritance tax

The Director of the National Tax Information Directorate issued an individual interpretation regarding inheritance tax in Poland. The ruling clarifies that funds returned by a bank following the annulment of a deceased borrower's loan agreement are not subject to inheritance and gift tax.

In the specific case, a mortgage in a foreign currency was fully repaid before the borrower's death in 2019. In 2021, the heirs challenged the contract due to unlawful provisions. A district court subsequently declared the agreement invalid in 2026, ordering the bank to return funds to the heirs. The tax authority determined that because the claim for reimbursement arose only after the borrower's death, the funds did not enter the inheritance estate.

Separately, tax regulations emphasize that members of the 'zero group' (spouses, children, parents, siblings, and grandchildren) can remain entirely exempt from inheritance tax by filing the SD-Z2 form within six months of acquiring the inheritance. Failure to meet this deadline or report the assets can result in the loss of tax exemptions and potential fines under the Fiscal Penal Code.