The introduction of the mandatory KSeF (National e-Invoicing System) will undoubtedly affect all issues related to invoicing, circulation of invoices within organizations or exchange of invoices with contractors. This will also concern self-billing, as invoices issued this way are subject to the obligation of being issued in KSeF, which will involve the necessity to properly…
Remitter’s payment of outstanding social and health insurance contributions in the part in which they should be financed by the employee or contractor does not give rise to income for them within the meaning of Article 11(1) of the PIT Act – the Ministry of Finance has published a general tax ruling On 30 March…
Comparative analysis, also referred to as benchmarking analysis, is basically a key element of a transfer pricing documentation. Its purpose is to demonstrate that a given controlled transaction was made in accordance with the arm’s length principle. A correctly prepared analysis is therefore a security for the taxpayer in case allegations are raised by tax…
Financial institutions more and more often require guarantees when granting financing to enterprises. Entities belonging to capital groups may use intra-group guarantees as an alternative to guarantees from external financial institutions. It is the easiest and fastest way to obtain financing. One option are mutual guarantees: two or more related companies guarantee each other’s liabilities.…
Bartosz Doroszuk of MDDP offers insights on Poland’s new tax legislation on shifted profits, as the implementation deadline looms nearer. The new tax on shifted profits has been implemented via the Polish CIT Act from January 1 2022. Since this tax is settled on annual basis, the upcoming deadline for the annual CIT return would…
Q1 2023 is coming to an end and taxpayers have already familiarized themselves with the changes brought in by the new year in the area of transfer pricing. The key one are shortened documentation and reporting deadlines, but apart from that, a number of seemingly minor changes were introduced at the beginning of the year.…
End of Q1 2023 – what obligations must be met? For most taxpayers operating in corporate groups the end of March 2023 is associated with the deadlines for meeting the last transfer pricing obligations. Some of them still apply to 2021. TPR for companies with a shifted tax year As a rule, in previous years…
The instrument of recharacterization and non-recognition of transactions was introduced to the transfer pricing regulations on 1 January 2019. Tax authorities may decide that in comparable circumstances third parties would not have made a given controlled transaction or would have entered into a different transaction (the so-called ‘proper transaction’). If that is the case, the…
Janina Fornalik of MDDP explains recent changes to, and potential problems with, the proposed mandatory e-invoicing system in Poland and why businesses should already be preparing for its implementation. A European Council derogation decision allowed Poland to introduce a mandatory e-invoicing system starting from January 1 2024 and draft regulation stated this date. However, according…
Today we are addressing formal conditions to be met only in the case of in minus adjustments. Condition 3: TP adjustment in the books of both transacting parties The taxpayer must have a statement from a related entity or an accounting evidence confirming that the entity made the TP adjustment in the same amount as…