Poland: Poland prepares for new TP-R reporting
International Tax Review is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Poland: Poland prepares for new TP-R reporting

Sponsored by

sponsored-firms-mddp.png
The forms hope to increase efficiency

Magdalena Marciniak and Magdalena Dymkowska of MDDP outline how the new TP-R form will make positive changes to the art of tax reporting in Poland.

Polish taxpayers will have until the end of September 2020 to file a new declaration – the TP-R form - related to FY 2019, with the tax authorities. Taxpayers may expect the new obligation to bring more radical changes than expected in some areas.

TP-R is a tax information form to be filed electronically with the Head of National Revenue Administration. Given the extent of the detailed data and information to be reported, it will be an ideal tool to identify transactions to be later verified during a tax audit.




The TP-R form must disclose:

  • general financial information (including values of financial ratios measuring a taxpayer’s financial position); 

  • information about related entities and controlled transactions;

  • information about transfer pricing method used to verify the arm’s length character of the controlled transactions;

  • the result of the comparability analysis.


Given that the comparability analysis is a mandatory element of a local file since 2019, the presentation of the result of analysis and reference to the actual transfer price (e.g. profitability ratio) should be also reported in TP-R. Also, TP-R must present profitability ratio when the filing taxpayer is a service recipient. In practice, calculation of profitability ratio could be challenging and time-consuming for each organisation, particularly in cases featuring a foreign service provider. Therefore, it is necessary that entities acquiring services from related parties cooperate with the service provider to possess all information required under the new rules. 




Additionally, taxpayers will be obliged to provide very specialised and detailed information related to benchmarking studies such as the tested party and the region analysed. Also information regarding the adjustments applied in the benchmarking process will be required. Therefore, completing the form may be demanding and it will require delving into the benchmarking process or using support of external advisors.



In the light of the above, reporting obligations in TP-R will impose on Polish taxpayers more administrative effort compared to the CIT-TP / PIT-TP form, which taxpayers submitted in 2017 and 2018. 



It should be noted that failure to prepare the TP-R form, submitting a false declaration or submitting it after the deadline exposes the taxpayer to severe penal fiscal sanctions: potentially up to PLN 20 million. It is therefore necessary to take due care in correctly fulfilling all TP-R reporting obligations.



The new reporting obligation deadline will coincide with that for filing the statements on preparing local transfer pricing documentation: by the end of the ninth month after the end of the financial year. There is not much time until the end of September 2020 to collect all information required in TP-R. That is why it is advised to prepare a draft TP-R form at the beginning of 2020 in order to analyse if (i) a taxpayer knows how to fill it in, (ii) its systems support collecting required data and (iii) the remuneration applied in the intragroup transactions enables the parties to achieve the actual profitability ratio within the arm’s length range.





Magdalena Marciniak

E: magdalena.marciniak@mddp.pl



Magdalena Dymkowska

E: magdalena.dymkowska@mddp.pl

more across site & bottom lb ros

More from across our site

The ‘big four’ firm has threatened to legally pursue those behind the letter, which has been circulating on social media
The guidelines have been established in the wake of multiple tax scandals and controversies that have rocked the accounting profession
KPMG Netherlands’ former head of assurance also received a permanent bar and $150,000 fine; in other news, asset management firm BlackRock lost a $13.5bn UK tax appeal
The new, fully integrated office will also offer M&A, dispute resolution, IP and corporate tax services
The new guidance concerns a recent 1% excise tax on the repurchases of corporate stock for both US and certain foreign companies
Interpath has hired a managing partner from rival accounting firm BDO to lead the new operation
Survey results of over 28,000 in-house lawyers reveal that American in-house counsel place a higher value on the reputation of external advisers than their peers elsewhere
In an exclusive interview with ITR, Andrew Leigh also endorsed new legislation designed to prevent multinationals using complex corporate structures to reduce taxes
Nick Crama and Parwesh Bissumbhar, senior director and manager respectively at Alvarez & Marsal, outline practical advice for real estate managers to comply with DAC6 regulations
The finalists for the 13th annual awards revealed
Gift this article