On 17 July this year, the European Commission will present a report on the progress made in the implementation of the Lisbon Strategy. The Ministry of Finance published explanations on how to submit a declaration on the preparation of local transfer pricing documentation on the basis of the regulations in force since 1 January 2019.
The statement on the preparation of local transfer pricing documentation should contain the full name of the entity submitting the statement, the tax identification number, and if there is no such number – another identification number with the specification of its type, address (country, city, postal code, street, building number, premises number) of the registered office or management board, and in the case of natural persons – the address of residence, indication of the function performed in the entity by each of the persons signing the statement.
In accordance with Art. 11m section 2 of uCIT and Art. 23y section 2 of uPIT, respectively, in the statement on the preparation of local transfer pricing documentation, the entity declares that:
- prepared local transfer pricing documentation,
- transfer prices of controlled transactions covered by local transfer pricing documentation shall be set on terms which unrelated parties would have agreed among themselves.
- transfer prices for receivables and contracts referred to in art. 11o par. 1 of uCIT/ art. 23za par. 1 of uPIT and covered by local transfer pricing documentation are set on terms which would be agreed between unrelated entities, none of which is resident, registered or headquartered in the territory or in the country applying harmful tax competition (for taxpayers referred to in art. 11o par. 1 of uCIT/ art. 23o par. 1 of uPIT).
Pursuant to art. 11m par. 4 of uCIT and art. 23y par. 4 of uPIT, a statement on the preparation of local transfer pricing documentation shall be submitted solely by means of electronic communication in accordance with the provisions of the Tax Ordinance, to the electronic mailbox address of the tax office via the Electronic Platform for Public Administration Services ePUAP (https://epuap.gov.pl/wps/portal).
In accordance with art. 11m section 3 of uCIT and art. 23y section 3 of uPIT, respectively, the statement on the preparation of local transfer pricing documentation is signed by the head of the unit within the meaning of the Accounting Act.
As explained by the Ministry of Finance when submitting the declaration via the Electronic Platform for Public Administration Services ePUAP and the general letter, it is possible to sign the declaration by more than one person using a trusted signature or a qualified certificate (signature).
Let us remind you that the regulations in force until 31 December 2018 did not clearly indicate the person who should sign the statement, which caused numerous doubts on the part of taxpayers, even if the statement can be made by a proxy. The current wording of the provisions removes the existing doubts, as the provision clearly indicates who may submit the indicated statement.
It should be remembered that the obligation to submit a statement on the preparation of local transfer pricing documentation for transactions executed in 2018 expires on 30 September 2019.
Author: Beata Rawa – senior tax consultant