Tax returns vs longer deadlines for meeting transfer pricing documentation obligations

23 March 2018 

In connection with the extension of deadlines for meeting transfer pricing (TP) documentation obligations, on 16 March 2018 the Ministry of Finance published practical explanations concerning annual tax returns.
Below you will find the most important guidelines presented by the Ministry.

Transfer pricing documentation in Poland

If taxable persons must prepare a Local File under CIT Act or PIT Act, in their tax returns they should check "yes" in box 24 of CIT-8(25) form; in box 26 in CIT-8A(12) and CIT-8b(11) forms or put a cross (x) in box 38 or 38a in PIT-36(25) form; in box 10 in PIT-36L(14) form.

If taxable persons must prepare a Master File referred to in Article 9a(2d) CIT Act or a benchmarking study referred to in Article 9a(2b)(2) CIT Act, in their tax returns they should check "yes", respectively, in boxes 25 and 26 in CIT-8(25) form, in boxes 27 and 28 in CIT-8A(12) form and in CIT-8B(11) form.

Statement on preparation of transfer pricing documentation in Poland

If taxable persons would like to make use of the extended deadline for the preparation of the documentation, they should not attach the statement on preparation of transfer pricing documentation to the tax return filed within the statutory deadline (this applies both to PIT taxable persons and CIT taxable persons). At the same time, in the filed tax return they should check "no" in box 34 in CIT-8(25) form, in box 24 in the CIT-8A(12) and CIT-8B(11) forms. If they file the statement within the extended deadline, they will not have to file an amended tax return.

If a taxable person has the documentation ready and would like to submit the statement on preparation of transfer pricing documentation together with the filed tax return, he should send the statement to the relevant tax office. In such a case in the tax return the CIT taxable person should check "yes" in box 34 in CIT-8(25) form, in box 24 in the CIT-8A(12) and CIT-8B(11) forms.

CIT-TP and PIT-TP summary reports

Taxable persons who would like to make use of the extended deadline for submitting transfer pricing documentation and who, at the same time, must enclose CIT/TP or PIT/TP summary reports with the tax return under CIT Act and PIT Act should leave the box referring to CIT/TP or PIT/TP empty(box 33 in CIT-8(25), box 23 in CIT-8A(12) and CIT-8B(11); box 341 in PIT-36(25), box 106 in PIT-36L(14)).

The Ministry of Finance is working on an option to let the taxpayers submit CIT-TP and PIT-TP summary reports online in the e-Deklaracje system (i.e. within the extended deadline provided for in the regulation, separately from the tax return after it has been filed). Therefore, amendments are planned to the regulations laying down the templates of both CIT-TP and PIT-TP summary reports. The work is planned to end at the end of May 2018. This means that submitting the CIT-TP or PIT-TP summary report within the deadline extended under the regulation will not trigger an obligation to file an amended tax return.

If the taxable person would like to enclose the CIT/TP or PIT/TP summary report with the tax return, he should check the relevant box in the tax return.

The extension of TP documentation deadlines provided for in the regulation does not affect the obligation to prepare and submit information on contracts made with non-residents (ORD-U reports). Consequently, taxable persons who must compile and submit the CIT-TP or PIT-TP summary report (both those submitting them within the statutory deadline and those who file them within the extended deadline) will generally not be obliged to compile and submit the ORD-U report. This obligation will apply to taxable persons who make transactions with entities from the so-called tax havens.