Advance Pricing Agreement forms: APA-P and APA-C

by Joanna Tomczak

17 May 2021​

 
Taxpayers who have obtained an APA must follow its provisions concerning the transfer pricing method. Additionally, they must file a report on the APA execution for every year covered by the agreement.

Reporting rules

The obligation to report on the APA execution arises from Article 107 of the Act of 16 October 2019 on Resolving Double Taxation Disputes and Concluding Advance Pricing Agreements (the APA Act).

Following the APA Act’s entry into force, the Ministry of Finance (MF) has designed new reporting rules and requirements. The requirements are set out in a separate Finance Minister’s regulation of 23 December 2019 on the template report on execution of an advance pricing agreement for persons liable to personal and corporate income tax.

Taxpayers who have an APA should file the report on APA execution with the Head of National Revenue Administration. They do it using interactive forms available of the MF’s Tax Portal. The right form depends on the type of the reporting entity, that is:

• APA-C for legal persons;
• APA-P for natural persons.

The above forms have to be filed in order to allow and simplify the MF’s checking of whether associated enterprises follow the APA terms.

The form should be signed by the taxpayer’s authorised representative and filed electronically or on paper.

Data disclosed in the report

The report on APA execution has to include, without limitation, the following information:

1. details of the party to the APA and of the associated enterprises covered by the APA, such as the name, tax identification number, address;
2. details of the official administrative decision on the APA, i.e. the decision date, number, term, and agreement type;
3. the transfer pricing method stipulated in the APA, including the type of method, the period of application, the sales volume, and the transfer price;
4. individual information included in the APA;
5. additional information, e.g. on changes to business relationships which significantly affect parts of the APA (type, reason, and financial implications of the change).

Please note that the current forms are binding also on entities who have an APA issued on the basis of the old rules of the Tax Act, i.e. before the APA Act entered into force. Such entities have to disclose only the basic data in the reporting forms, that is, those mentioned in items a), b), c), e), without the extended scope of item d) from the above list.

Deadlines

The report on APA execution has to be filed within the same deadline as the annual tax return. Importantly, due to the on-going pandemic and the extended deadline for filing the annual CIT-8 return, the filing deadline for the APA-C form has also been extended until 30 June 2021.