New regulations in the field of transfer pricing
documentation came into force in Poland on January 1 2018. The
new regulations introduced important changes for taxpayers.
Transfer pricing documentation now consists of three parts:
the local file, the master file and the country-by-country
reporting. Additionally, the new rules introduced a CIT-TP
(corporate income tax – transfer pricing) form which
must be attached to the annual tax return and which includes
information concerning the taxpayer.
The new regulations determine a statutory deadline for
transfer pricing documentation preparation which coincides with
the date of filing a tax return (CIT-8 return).
Therefore, in addition to their obligation to file a tax
return, taxpayers should also be ready with the transfer
pricing documentation by the same date. The deadline concerns
taxpayers whose tax year coincides with the calendar year. For
other taxpayers, the deadline will be in line with the end of
the tax year selected by them. Failure to prepare the
documentation involves the risk of severe penal tax
sanctions.
Although the taxpayer is not obliged to submit the
documentation by this deadline, the tax authorities can check
almost immediately after this date whether taxpayers have met
their statutory obligations. In such a situation, the seven-day
deadline for the submission of the documentation to the
authority may be impossible to keep if work on it has not even
begun.
Furthermore, the annual tax return form has also been
changed. Taxpayers now have to report on additional issues
regarding their cooperation with related entities. In the new
version of the CIT-8 returns, the taxpayer will also have to
declare whether it is obliged to prepare:
- Local documentation,
- Group documentation – a master
file; or
- A comparative data analysis.
Additionally, where the taxpayer is obliged to prepare
certain documentation, it should also declare that preparation
of the documentation has been completed. The declaration
concerns the taxpayer's preparation of the local documentation
only – a local file (including benchmarks), and does
not include the information provided as part of the group
documentation (master file).
The declaration should be submitted by the relevant deadline
set for submitting the annual tax return for the given year. In
other words, in the case of taxpayers whose tax year coincides
with the calendar year, it should be submitted by March 31. For
other taxpayers, the deadline is within three months of the end
of the tax year.
The Ministry of Finance has yet to publish an official model
declaration, but this does not exempt taxpayers from the
obligation of submitting their declarations.
The Ministry of Finance is working on the regulation on the
extension of the deadline for preparing the transfer pricing
documentation, submitting the declaration as well as the CIT-TP
form. The ministry plans to extend this deadline for
obligations occurring in 2018 and 2019 to September 30. It is
therefore intended to cover documentation obligations for FY
2017 and FY 2018.
It should be borne in mind that failure to prepare the
transfer pricing documentation by the statutory deadline means
that the taxpayer would have to submit a false declaration as
regards the preparation of the documentation, or fail to submit
such a declaration altogether. Each of these situations exposes
the taxpayer to severe penal fiscal sanctions.
It is therefore necessary to take due care in fulfilling the
statutory deadline for the preparation of transfer pricing
documentation in Poland.
We are waiting for the publication of the Minister of
Finance's regulation regarding the extension of the deadline
for fulfilling the transfer pricing obligations. The regulation
is planned to be issued on February.
|
|
Magdalena
Marciniak |
Karolina
Stupak |
Magdalena Marciniak (magdalena.marciniak@mddp.pl)
and Karolina Stupak (karolina.stupak@mddp.pl)
MDDP, Poland
Tel: +48 (22) 322 68 88
Website: www.mddp.pl