We would like to remind you that the deadline of 30 September 2019 for fulfilling transfer pricing obligations in relation to transactions executed in 2018 expires.

Taxpayers obliged to prepare tax documentation and recognizing income or costs within the meaning of the accounting regulations, which exceeded the equivalent of EUR 10 million in a tax year, are obliged to submit, next to their annual tax return, a CIT-TP form concerning transactions with related entities or other events occurring between related entities, or in connection with which the payment of receivables is made directly to an entity having its residence, registered office or management board in the territory or in the country applying harmful tax competition.

The deadline for submitting CIT-TP is the aforementioned 30 September 2019.

At the same time, 2018 is the last year for which taxpayers are obliged to submit a form in such a form. As of the new year, the CIT-TP form will be replaced with information on transfer pricing (TP-R).

In addition to the aforementioned CIT-TP form, taxpayers are obliged to submit a statement on the preparation of documentation within the specified deadline. The said statement should be submitted in accordance with the legal status according to which the transfer pricing documentation was prepared. We have written more on this subject here.

The obligation to submit the said statement has been introduced since 1 January 2017. 2017 was the first tax year for which taxpayers submitted to tax offices a statement on preparation of tax documentation.

A taxpayer who decides to choose the 2018 regulations should declare that it has prepared transfer pricing documentation. The 2019 regulations introduced a new element of the content of the statement, in the form of a taxpayer’s statement that the prices used in transactions with related parties are market prices.

Author: Beata Rawa ? senior tax consultant