TAX ALERT SK&S | New reporting obligation from 1 January 2021 – tax strategy report

The obligation to prepare the report applies to:

  • companies in which the market value of their real property represents at least 50% of their assets
  • tax capital groups irrespective of their revenues
  • other CIT payers whose revenues exceed the equivalent of EUR 50 million (as disclosed at the end of the previous calendar year)

Due date for publication:

  • the report should be made public online on the company’s own www address within 9 months after the date to submit their CIT annual return

What is to be included in the report:

  • a description of the processes used to manage compliance with tax obligations, including voluntary forms of cooperation with the national fiscal administration (KAS)
  • a description of the taxpayer’s approach to implementing their tax obligations in Poland, including providing information on submitted reports regarding Mandatory Disclosure Rules (MDR)
  • information on transactions with related entities whose value exceeds 5% of the balance sheet total (including those exempt from the obligation to be included in transfer pricing documentation)
  • planned restructuring (including the restructuring concerning related entities)
  • information on submitted applications for: individual tax rulings, binding rate information (WIS), or binding excise information (WIA)
  • information on tax settlements performed in tax-havens

Sanctions for failing to comply with the obligation:

  • a financial penalty of up to PLN 1 million

How we can help you:

  • we will determine the scope of information protected by trade, industrial, and professional secrecy, or related to the process of production – these are excluded from the reporting obligation
  • we will catalogue and supplement the procedures and processes of tax risk management
  • we will evaluate the significance of transactions and if they should be included in the reporting obligation, and we will establish the scope of data that needs to be included in the report
  • we will evaluate the potential impact of planned or commenced restructuring activities on the amount of the tax liability of the taxpayer or of its related entities

Download the PDF version here