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.
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.
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.