The Act amending the Act on Exchange of Tax Information with Other Countries and Other Acts supplements the provisions of the Tax Ordinance Act with regard to applying for an interpretation of tax law.
The Act introduces an obligation for the applicant applying for an interpretation of tax law, respectively the country or territory of residence of a natural person, to provide data identifying a legal person or an organizational unit without legal personality, including the country or territory of the headquarters, management or location of a foreign company, as well as countries or territories in which cross-border effects occurred or may occur, if the facts or future events presented in the application for an individual interpretation include a transaction, a set of transactions or other events:
1) with the participation of a natural person, a legal person or an unincorporated entity:
a) which have their place of residence, registered office or management board outside the territory of the Republic of Poland, or
b) which conduct business activity outside the territory of the Republic of Poland through a foreign company, and the transaction, set of transactions or other events constitute a part or the whole business activity of the foreign company, or
(c) parties to a transaction, set of transactions or event resident, established or managed in more than one country or territory; or
2) having cross-border implications.
The legislator explains that cross-border effects have no specific meaning and, according to the language definition, concern an event with effects in two countries, e.g. an activity in another country. In the explanatory memorandum to the Act it was additionally explained that an example of an individual interpretation from which cross-border effects could be read would be e.g. an interpretation confirming the non-existence of a permanent establishment in another country in the light of a double taxation treaty.
The obligation to provide the above information does not apply to applications for individual interpretations concerning only an individual case of a natural person and within the scope of excise tax and value added tax.
The Act currently awaits the signature of the President of the Republic of Poland and, with regard to amendments to the Act, the Tax Ordinance will enter into force within 14 days after its publication.