In case of taxpayers meeting certain criteria (details below), the first quarter of 2021 may require fulfilling transfer pricing obligations for the tax years 2019 and 2020.
The obligations for 2019 for which the deadlines have been extended in accordance with the fourth version of the Anti-Crisis Shield are presented below.
- Preparation of group transfer pricing documentation, i.e. the Master File, by the end of the third month counting from the day following the deadline for submitting a statement on the preparation of local transfer pricing documentation
- Under the CIT and PIT Act, related entities consolidated for accounting purposes using the full or proportional method, which are obliged to prepare a local transfer pricing documentation, should be in possession of a group transfer pricing documentation if they belong to the group of related entities:
– for which the consolidated financial statements are prepared,
– whose consolidated revenues exceeded in the previous financial year the amount of PLN 200 million or its equivalent.
- For taxpayers whose original deadline for submitting the statement for 2019 was December 31st, 2020, the available timeframe to obtain Master file from its group or to prepare it autonomously expires on March 31st, 2021. However, for taxpayers whose original deadline for submitting the statement expires in the period from October 1st, 2020 to January 31st, 2021, the abovementioned obligations may be correctly fulfilled by the end of the third month counting from the day following the deadline for submitting the statement.
- Submission of transfer pricing information, also known as TPR-C or TPR-P
- For taxpayers with shifted or extended tax year, whose original reporting deadline for 2019 expires within the period from October 1, 2020 to January 31, 2021, the deadline for submitting TPR-C or TPR-P has been extended by 3 months, i.e. the deadline passes after 12 months from the end of the tax year.
- Submission of a statement on the preparation of local transfer pricing documentation
- For taxpayers with shifted or extended tax year, whose original reporting deadline for 2019 expires in the period from October 1st, 2020 to January 31st, 2021, the deadline for submitting the statement has been extended by 3 months, i.e. the deadline passes after 12 months from the end of the tax year.
The obligations for 2020 with the upcoming completion date are presented below.
- Submission of a notification of information on a group of entities prepared in the group (Country-by-Country Reporting), also known as CBC-P, within 3 months from the end of the group’s reporting financial year
- The obligation to submit the CBC-P notification applies to entities belonging to a capital group obliged to submit information about a capital group, i.e. the CBC-R report, in country or territory other than Poland. The obligation to prepare a CBC-R report arises when the consolidated revenues of the group exceeded PLN 3.25 billion or EUR 750 million or its equivalent.
- In the CBC-P notification, the entity belonging to a capital group is required to indicate the reporting entity and the country or territory where the CBC-R report will be submitted.
- Pursuant to the Polish regulations, an entity belonging to a group of companies is obliged to submit a CBC-P notification within 3 months from the end of the group’s reporting financial year. Accordingly, in case of group’s with financial year between January 1st, 2020 and December 31st, 2020, the deadline for submitting the CBC-P notification will expire on March 31st, 2021. However, the deadline for submitting CBC-R report is 12 months from the end of the reporting financial year, so for the financial year lasting from January 1st, 2020 to December 31st, 2020, the deadline will expire on December 31st, 2021.
- Both the CBC-P notification and the CBC-R report must be submitted electronically via the e-Declarations system. The CBC-P notification template and the CBC-R report form with the instruction are available on the website of the Ministry of Finance.
If you are interested in obtaining further information, or would like to discuss the impact of
the above on your business activity please contact:
Renata Dłuska email@example.com tel. + 48 22 322 68 80
Magdalena Marciniak firstname.lastname@example.org tel. + 48 22 322 68 84
or your MDDP adviser.