Recent amendments to the Polish Corporate Income Tax Act require certain companies operating in Poland to publicly disclose their tax strategy on their website by 31 December 2021. Failure to meet this obligation may result in a fine of up to PLN 250k (approximately EUR 74k).
The new tax strategy disclosure requirement applies to Polish corporate income taxpayers with:
- A local polish revenue above EUR 50 million a year; or
- Polish tax capital groups (fiscal unities) irrespective of their local revenue,
If one of the thresholds above is met, the taxpayer must publish its tax strategy on the company’s website. However, if a taxpayer does not have its own website, the information on the implemented tax strategy shall be made available in Polish on a website of an associated entity within the meaning of transfer pricing regulations. In both scenarios, the reporting to Polish tax authorities shall be performed by 31 December 2021.
Below you may find a non-exhaustive list of the information that should be disclosed:
- Information related to the processes and methods applied for managing and ensuring the appropriate execution and compliance with tax law;
- Information related to compliance with tax-related requirements in Polish territory (including the number of the reported tax schemes);
- Information related to intercompany transactions which exceed 5% of the taxpayer’s balance sheet;
- Information related to restructurings which (may) impact the tax liability of the group.
In view of the abovementioned obligations, please feel free to reach out if you have any further questions or need support.
Authors: Raymund Gerardu, CFO at TPA Global & Victor Caligiuri, Associate at TPA Global
Source: Article 27c – Polish Income Tax Act
