The Act Amending the Act on Exchange of Tax Information with Other Countries and Other Acts introduces changes regarding to country-by-country reporting (CbC). The Act currently awaits the signature of the President of the Republic of Poland and will enter into force in respect of CbC within 14 days after its promulgation.

The most important changes are:

? New definition of a group of entities

The new definition of the group of entities no longer refers to accounting regulations.
The group of entities will also include a group of entities for which consolidated financial statements would be drawn up if the equity interests in one or more of the entities in the group were traded on a regulated market.

? New threshold amount for consolidated revenue and clarification of the rules for its conversion

The new threshold value of consolidated revenues of PLN 3,250,000,000 was determined when a group of entities prepares consolidated financial statements in PLN.
It was also indicated that the equivalent of the threshold amount of consolidated revenue (EUR 750 000 000) is converted at:
– rules drawn up by the state or territory in which the parent company has its registered office or management board (in the case of a capital group whose registered office or management board is outside the territory of the Republic of Poland),
– the most recent exchange rate published by the European Central Bank on the last day of the financial year preceding the reporting financial year, where the capital group in which the parent company has its registered office or central administration in the territory of the Republic of Poland prepares consolidated financial statements in a currency other than the zloty.

? Introduction of the method of calculating the threshold amount if the financial year covers a period other than 12 months – in the amount of 1/12 for each commenced month of the financial year.

? Introducing an obligation to send notifications only electronically, with a new deadline for submitting notifications (CBC-P) – 3 months from the end of the reporting financial year of a group of entities.

? Introduction of the possibility of submitting the CbC-R and CbC-P correction.

? Clarifying the understanding of the term of non-performance of obligations by an entity belonging to the group with respect to the submission of CbC-R and CbC-P by specifying that the provision of information that is incomplete or inconsistent with the data is also subject to a financial sanction.

? Introduction of a type of privileged prohibited action for failure to submit a CbC-R report by specifying that in the case of a lesser weight, the offender is subject to a penalty, as for a fiscal offence.

? Introduction of the obligation to provide additional information or explanations (e.g. identification data of entities within a group of entities, information on retained earnings, number of employees, tangible assets) also in English.