Step 6 – Other elements (for some taxpayers)

6 steps to TP without (active) repentance

The best performing entities are obliged to prepare not only the TPR form and Local File including benchmarking studies and compliance descriptions, but also the Master File, group information (CbC-R report) and CbC-P notification. Although the deadline for full transfer pricing reporting is longer, it is advisable to fulfil this obligation as soon as possible.

 

Master File

According to Polish legislation, the obligation to attach the Master File to the Local File rests solely with consolidated entities belonging to the largest groups whose consolidated revenue in the previous financial year exceeded PLN 200 million or its equivalent.

The deadline for preparing the Master File has also been extended. The new regulations provide for filing the Master File by the end of the third month counting from the day following the day on which the (extended) deadline for filing the statement on preparation of the Local File expired. In practice, if your financial year is the same as the calendar year, this deadline is 31 March 2022.[1]

The Master File can be prepared by both Polish taxpayers and other entities belonging to a group of related parties. Most often, however, the Master File is prepared by the parent entity in the group.

In the event that you are responsible for preparing the Master File, we recommend that, despite the relatively long deadline for fulfilling this obligation, you request the parent company and/or other group entities in advance to provide information necessary to prepare the Master File in accordance with Polish legislation. In practice, obtaining all necessary information from group entities may be very time-consuming and often problematic.

If the Master File is prepared by another group entity and you only receive the completed Master File, you will still be required to verify the Master File received for compliance with all requirements laid down in domestic regulations, since the Master File prepared by another group entity does not release you from the responsibility for the Master File to comply with Polish legislation.

How we can assist

Our support includes:

  • drawing up a list of required information and a ready-to-complete form with questions to group entities to obtain full information necessary for the preparation of the Master File in compliance with Polish legislation;
  • preparation of the Master File containing all mandatory elements required by national law.

 

Cbc-R

The obligation to file the CbC-R report with the Head of the National Tax Administration rests in principle solely with parent entities established in Poland, having subsidiaries or a foreign permanent establishment outside Poland, and belonging to large international groups whose consolidated revenue in the financial year exceeded PLN 3.25 billion or EUR 750 million. You are required to file the CbC-R report within 12 months of the end of the financial year. This deadline has not been extended so far.

 

CbC-P

The CbC-P notification has to be filed by all entities belonging to a group whose consolidated revenue in the financial year exceeded PLN 3.25 billion or EUR 750 million. Taxpayers submit the CbC-P form, indicating whether they are also the entity filing the CbC-R report. The CbC-P notification has to be submitted within three months of the end of the financial year. This deadline has not been extended so far.

How we can assist

Our support includes:

  • drawing up a list of required information and a ready-to-complete form with questions to group entities to obtain full information necessary for completing the CbC-R and CbC-P forms;
  • drafting the CbC-R and CbC-P forms.

 

Congratulations! You have completed all 6 steps to TP without (active) repentance

 

[1] The amendment introduced by virtue of Article 77(62) of the Act of 19 June 2020 on subsidies to interest rates on bank loans granted to entrepreneurs affected by COVID-19 and on the simplified procedure for the approval of the arrangement in connection with the occurrence of COVID-19 (Journal of Laws of 2020, item 1086). The amendment was introduced to Article 31z(3) read together with Article 31z(2) of the Act of 2 March 2020 on special arrangements for preventing, counteracting and combating COVID-19, other infectious diseases and crisis situations caused by them (Journal of Laws of 2020, item 374).

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