Important dates in 2023 - for companies with a fiscal year coinciding with the calendar year.
|Deadline for preparing the Master File for 2021;Submission of CIT-8 (transfer pricing adjustment information);Submission of ORD-U (be aware of possible exemptions);Submission of CBC-P (for 2022).
|Deadline for preparing the Local File and benchmark and compliance analyses.
|Deadline for submitting TPR form (with a market-price clause - no need to submit a statement as in previous years).
|Deadline for preparing the Master File and submission of CBC-R for 2022.
New documentation and reporting deadlines
Deadline for preparing the Local File -- by the end of the 10th month following the end of the fiscal year.
Deadline for preparing and submitting transfer pricing information (TPR form) - by the end of the 11th month following the end of fiscal year.
Deadline for submitting the Local File by the taxpayer at the request of the tax authority - 14 days.
Changes in transfer pricing for 2023
Important: These changes concern transfer pricing documentation for 2022.
- The taxpayer is required to submit the TPR form to the relevant Head of the Tax Office, not to the Head of KAS as before.
- No obligation to submit a statement on the preparation of transfer pricing documentation nor on the market-price clause - this year it will be merged with the TPR form (previously it was a separate document).
- The TPR form with a market-price clause should be signed (in the case of companies) by the head of the entity, and in case the entity is headed by several members, by a distinguished person who is part of the management body. Important: It is not permissible to sign this information through a proxy, except for a proxy who is a lawyer, legal adviser, tax advisor or statutory auditor.
- No obligation of submitting an ORD-U for taxpayers/non-corporate companies that are required to submit TPR and do not carry out transactions with tax havens.
- The rules for reporting direct transactions with tax havens have changed. Increased thresholds:
- PLN 2,500,000 – in the case of a financial transaction;
- PLN 500,000 – in the case of a transaction other than a financial transaction.
- The possibility of not preparing a benchmark and compliance analyses:
- controlled transactions concluded by taxpayers who are micro or small enterprises;
- transactions other than controlled transactions concluded with the tax havens covered by the obligatory documentation.
- The catalogue of exemptions from the obligation to prepare local file documentation has been expanded for:
- controlled transactions covered by the investment agreement and the tax agreement;
- transactions on settlements for “pure reinvoicing” (under specific conditions);
- controlled transactions covered by the safe harbour mechanism for low value added services (under fulfillment of conditions in art. 11f);
- controlled transactions covered by the safe harbour mechanism for loans, credits, bonds (under fulfillment of conditions in art. 11g).
It should be remembered that the tax authority has the right to examine the market value of transactions between related parties regardless of the question of whether the obligation to prepare transfer pricing documentation arises.
In the next article, we will describe the changes regarding transfer pricing adjustments and sanctions related to a failure to prepare transfer pricing documentation. We encourage you to follow our Linkedin profile.