TPR Form – changes announced by the Ministry of Finance

Recently, the Ministry of Finance published new ordinance projects directed at the TPR-C and TPR-P forms.
Author:
Olga Kucewicz
Junior TAX Manager

These changes will concern the scope of transferred information on transfer pricing submitted for the tax year which commenced after the 31st of December 2020.

In practice, the planned changes expand the scope of submitted information on transfer pricing in PIT and CIT. The most important changes apply to submitting information concerning micro/small businesses, entities from “tax havens,” and transactions exempt from the obligation to prepare the Local File documentation on transfer pricing.

2021 is the last year when the declaration on preparing transfer pricing documentation will not constitute an attachment to the TPR form.

TPR and micro/small businesses

The changes introduced affect transactions made by micro and small businesses. Such entities will no longer have to indicate the benchmark and compliance analysis in their documentation of transfer pricing.

A micro business hires up to 10 people and has a net turnover that does not exceed 2 mln EUR. On the other hand, a small business hires up to 50 people and its net turnover does not exceed 10 mln EUR.

Iportant

TPR and “tax havens”

The proposed changes introduce the obligation to indicate on the TPR form any transactions with entities from “tax havens,” or with entities that inhabit, or have headquarters or management in a country applying harmful tax competition. This obligation concerns purchase transactions made since 1st of January 2021.

The new obligation concerns transactions with counterparties, the value of which exceeds 500 000 PLN in a given tax year.

Iportant

TPR and transactions exempt from preparing TP documentation

Any domestic transactions that meet specified criteria, safe-harbor transactions, and transactions covered by an investment or tax agreement, will not be the subject of TPR information.

It is not required to specify information concerning the applied transfer pricing or verification methods in the form. It is also not required to confirm that the transfer pricing covered by the Local File documentation was established on transaction terms made by non-affiliated entities.

Iportant

In case of any questions or doubts, we invite you to contact Olga Kucewicz or Miłosz Saramak.

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Pursuant to the Personal Data Protection Act of 29 August 1997 (Journal of Laws Dz.U. 2016 item 922, as amended), I consent to receive commercial and marketing information from KR Group sp. z o.o. sp. k. with its registered office at ul. Skaryszewska 7, 03-802 Warsaw, and to introduction into the database and processing by KR Group sp. z o.o. sp. k. of my personal data provided in this form. I also acknowledge that my consent is voluntary and that I have the right to review, correct or remove my data.

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