As of 1 January 2019, the obligation for taxpayers to submit CIT-TP (PIT-TP) reports was replaced by the obligation to submit transfer pricing information (TPR-C). This means that from January 2020, taxpayers will in practice have to face the new obligation for transactions carried out in 2019.
TPR-C information will have to disclose, inter alia, information on the methods used for transactions covered by the obligation to prepare local documentation, information on the profitability index chosen to verify the transfer price as well as information on the transfer pricing analysis.
In addition, it should be indicated that the TPR-C information will have to disclose transactions exempted from transfer pricing analysis, i.e. safe harbours for loans and safe harbours for low value added services.
It should be stressed that the TPR-C information will additionally have to be submitted by taxpayers who conclude transactions exempt from the obligation to prepare local transfer pricing documentation.
The obligation to submit TPR-C coincides in time with the submission of a statement on preparation of local documentation, which means that the information in question should be submitted by the end of the 9th month after the end of the financial year. The information TPR-C should be submitted electronically directly to the Head of the National Revenue Administration.
The data of the Ministry of Finance show that in 2018, 139 transfer price controls were carried out with positive results, with findings that the amount of additionally calculated or estimated income amounted to PLN 1,337,989,416 and the amount of income tax on account of identified irregularities amounted to PLN 218,731,836.
The legislator indicates directly that information on transfer pricing will be able to be used for analysis of the risk of underestimating taxable income and other economic analyses.
and statistical. At the same time, electronic transfer pricing reporting (TPR-C) is to ensure, in the opinion of the legislator, greater efficiency in the selection of taxpayers to be audited.
Bearing in mind the scope of information to be presented in the said information and the current scope of information provided in CIT-TP (PIT-TP) it is impossible to disagree with this statement.
At the same time, it should be pointed out that work is underway to introduce changes to the regulations on transfer pricing information (TPR-C). As indicated, the introduced changes will take effect in relation to transfer pricing information submitted for 2020. Thus, for 2019, associated entities obliged to submit transfer pricing information shall submit it in accordance with the regulations in force in this area.
Author: Beata Rawa – Transfer Pricing Manager