Changes and information expected by taxpayers come into force

We have some good news for taxpayers right before the end of the year and the beginning of intensive works on documenting and reporting transactions with related parties and tax haven entities.

On 21 October (Friday), the third version of the TPR-C Guidebook was published on the Ministry of Finance’s website. It supplements and extends the second edition of October 2021.

The TPR-C Guidebook is a set of practical questions and answers relating to individual sections of the transfer pricing information form.

What has changed?

The third edition of the guidebook extends the answers to the questions contained in the previous versions of the documents. Also, new matters have been addressed, including:

• reporting direct transactions with entities based in the so-called tax havens – the TPR Information may come without information on the transfer pricing method, verification method, benchmarking analysis and additional information or explanations.
• the possibility of signing the TPR form using a “foreign” qualified electronic signature,
• information to be provided by a micro- or small enterprise exempted from the obligation to attach a benchmarking or compliance analysis. In the ‘Price verification method’ box in the ‘E’ section of the form, the taxpayer should introduce the code MW00- ‘not applicable’,
• reporting restructuring transactions, in which it is possible to identify both the revenue and cost sides. Such transactions should be reported as two separate transactions,
• the period for which a limited partnership that is a CIT taxpayer from 1 May 2021 should submit the TPR Information and the entity competent to file this information. Taxpayers waited a long time for these explanations – in the case of a company required to submit the form for the period January-April 2021, the explanations were released after the deadline for meeting the obligations (i.e. after 30 September 2022)!

The full Guidebook is available at

https://www.podatki.gov.pl/media/8625/informator-tpr-2021.pdf

What now? Deadline for filing TPR

The changes apply to forms filed for 2021.

The deadline for submitting TPR for 2021 has been extended:

• until 30 September 2022 – if the deadline expires between 1 January 2022 and 30 June 2022,
• 3 months – if the deadline expires between 1 July 2022 and
  31 December 2022.

For taxpayers whose tax year is aligned with the calendar year, the deadline expires at the end of the year. Therefore, such taxpayers have to file the TP-R form until 31 December 2022.

The Polish Deal 3.0

On 21 October 2022 (Friday), the President of the Republic of Poland signed the Act of 7 October 2022 – previously adopted by the Parliament – amending the act on corporate income tax and certain other acts, commonly referred to as the Polish Deal 3.0. Although the new tax regulations will, in principle, enter into force on 1 January 2023, the provisions on indirect tax haven transactions were finally repealed with retroactive effect from 1 January 2021.

The amendment, in the context of transfer pricing applicable to transactions made in 2021, repeals the provisions on indirect tax haven transactions and increases documentation thresholds for transactions made directly with the so-called tax havens. The thresholds will be PLN 2.5 million for financial transactions and PLN 500 thousand for other transactions.

This is a good news for taxpayers who have waited a long time to have their obligations clearly established, especially in the field of documenting transactions made with third parties from tax havens in 2021.

We covered the planned changes on our blog in August > link.

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