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Taxation of sales intermediation services withholding tax
On 29 December 2021, the Director of the National Tax Information issued an individual interpretation with ref. no. 0111-KDIB2-1.4010.441.2021.1.MK on the determination of whether the Representatives' receivables (fee on sales) constitute receivables for advisory...
Transfer pricing obligations in the case of attribution of income (loss) to the Branch of the Company by the parent entity
On 3rd December 2021, the Provincial Administrative Court in Lublin, in the judgment of ref. I SA/Lu 431/21 on corporate income tax in the scope of determining whether the obligation to prepare transfer pricing documentation by the Branch includes a "controlled...
Positive restrictions on transfer pricing obligations
The concept of a controlled transaction includes all economic activities, the actual content of which is identified based on the actual behavior of the parties. Due to definition, each time-related parties are uncertain about the obligation to prepare transfer pricing...
The proposal indicated in the draft EU Directive will prevent certain shell entities from benefiting from the preferences contained in double tax treaties
On December 22, 2021. The European Commission presented a draft Directive[1] designed to prevent shell entities from unauthorizedly reducing or avoiding tax liabilities through international arrangements contained in double tax treaties. The aim is to prevent shell...
Keeping bank accounts falls within the definition of a controlled transaction – position of the ASC
On 18 June this year. The Director of the National Fiscal Information issued an individual interpretation 0114-KDIP2-2.4010.107.2021.1.RK regarding the determination of the value of controlled transactions for the maintenance of bank accounts. In the facts described...
Transfer pricing simplification package and the announcement of the ICAP Programme – news from the 12th Transfer Pricing Forum
According to the announcements of the Ministry of Finance presented by the Undersecretary of State of the Ministry of Finance, Jan Sarnowski, during the XII Transfer Pricing Forum, changes in the transfer pricing as part of the Polish Order are planned. According to...
When carrying out a transaction with a civil law partnership, the value of the transaction should be determined in relation to the civil law partnership and not separately for each partner of the partnership – interpretation by the Polish Accounting Standards Board
On 2 June 2021 The Director of the National Fiscal Information issued an individual interpretation (ref. 0113-KDIPT2-3.4011.207.2021.3.MS) on whether, in the case of a transaction with a civil partnership, the value of the transaction is determined: in relation to the...
Establishment of documentation obligations between SPZOZ and Medical University and Clinical Hospitals – interpretation by DKIS
On 18 May 2021 The Director of the National Tax Information issued an individual interpretation (ref. 0111-KDIB2-1.4010.54.2021.2.MK) concerning the determination of whether a) the Medical University and the Applicant, for which the Medical University is the forming...
Free-of-charge acquisition of shares for the purpose of their redemption is subject to transfer pricing documentation – interpretation by the Polish Accounting Standards Board
On 24 May 2021 The Director of the National Fiscal Information issued an individual interpretation (0111-KDIB2-1.4010.48.2021.1.MK) to determine whether the transfer pricing rules set forth in the Corporate Income Tax Act apply in connection with the acquisition by...
Free-of-charge acquisition of shares for the purpose of their redemption is subject to transfer pricing documentation – interpretation by the Polish Accounting Standards Board
On 24 May 2021 The Director of the National Fiscal Information issued an individual interpretation (0111-KDIB2-1.4010.48.2021.1.MK) to determine whether the transfer pricing rules set forth in the Corporate Income Tax Act apply in connection with the acquisition by...
A new list of territories and countries applying harmful tax competition
On March 1, 2021, an Announcement of the Minister of Finance, Funds and Regional Policy dated February 26, 2021 was published in the Monitor Polski on the announcement of the list of countries and territories indicated in the EU list of non-cooperative jurisdictions...
The acquisition of shares for cash constitutes a controlled transaction.
On 29.03.2021 The Director of the National Tax Information issued an individual interpretation (0114-KDIP2-2.4010.29.2021.1.RK) regarding the determination of the possibility of exemption from the obligation to prepare transfer pricing documentation. The applicant is...
What should be the content of the tax residency certificate?
Pursuant to Art. 4a(12) of the Corporate Income Tax Act, the tax residency certificate is a certificate stating the taxpayer's place of residence for tax purposes, issued by a competent tax administration authority of the taxpayer's country of residence. The...
There is little time left to submit the ORD-U
We would like to remind you that 31 March is also the deadline for submission of information on agreements concluded with non-residents (ORD-U) for taxpayers whose financial year coincides with the calendar year. The obligation to prepare and submit information...
The deadline for filing the CBC-P notification is approaching
We would like to remind you that March 31 of this year is the deadline for filing the notification regarding the obligation to provide information on the group of entities (CBC-P) for taxpayers whose fiscal year coincides with the calendar year. This is because...
Provisions regarding the obligation to file CbC-R (Country-by-Country Reporting) are not subject to interpretation under the individual interpretation.
This position is confirmed by the judgment of the Voivodship Administrative Court in Rzeszów of 21 January 2021. (Case file I SA/Rz 841/20). In the facts described above, the applicant applied to the Director of the National Fiscal Information for an individual...
Methodology for determining documentation obligation with a foreign permanent establishment
The transfer pricing analysis should cover one controlled transaction involving the attribution of income to the foreign permanent establishment(s), rather than several transactions involving the attribution of income or expenses of a certain type by source. The above...
Transfer pricing adjustments – and who to believe?
Profitability adjustments (upward or downward) made between related parties consisting in the adjustment of the profitability level should not be subject to VAT either as an adjustment of the tax base for the supply of goods or as remuneration for the provision of...
Advance invoices not settled in a given tax year should be recognized up to the limits in a controlled transaction of a homogeneous nature – DKIS interpretation
On 14 January 2021. The Director of National Fiscal Information issued an individual interpretation (0111-KDIB1-2.4010.274.2020.2.AW) to determine whether advance invoices not settled in a given tax year are included to the limits in a controlled transaction of a...
Aviation Law provisions and exemption from transfer pricing documentation – DKIS interpretation
On 21 December 2020. The Director of National Fiscal Information issued an individual interpretation (0111-KDIB2-1.4010.443.2020.1.BKD) regarding the determination whether a taxpayer conducting transactions for which the price is determined based on the provisions of...
The services of secondment of employees of group companies are included in the list of revenues subject to withholding tax (WHT)
The subject of the court ruling issued by the WSA in Gliwice on 13 January 2021 (ref. I SA/Gl 1338/20) was the qualification of the services of secondment of employees to the relevant category of revenue indicated in Article 21 of the Corporate Income Tax Act....
Active regret for TPR-C information filed late
On December 31, 2020, the deadline for filing the TPR-C information by taxpayers for which the fiscal year coincides with the calendar year expired. In the event of failure to submit the TPR-C information to the Head of KAS by the due date, the obliged entities should...
Pandemic impact on APA conclusion. Latest statistics from the Ministry of Finance
As of November 14, 2019, issues concerning advance pricing agreements are regulated by the Law on Settlement of Double Taxation Disputes and Conclusion of Advance Pricing Agreements (hereinafter the Law). Pursuant to Article 83(1) of the Act, the Head of KAS shall...
Application of minimum remuneration for surety in the light of administrative court judgments – judgment of the Supreme Administrative Court
On 18 November 2020. The NSA issued a judgment (II FSK 1949/18) repealing the appealed verdict of the WSA in its entirety and referring the case for re-examination. In the factual state described above, the company (the applicant) conducted business activity in the...
Should the free redemption of shares be treated as an economic activity? WSA judgment
On 17 November 2020. WSA in Poznań issued a judgment (I SA/Po 454/20) annulling the interpretation of the Director of National Revenue Information. In the described facts, the company (the applicant) and its shareholder applied for an individual interpretation of the...
Sales price adjustments as transfer price adjustment – DKIS interpretation
On 17 December 2020. Director of National Tax Information issued an individual interpretation (ref. 0111-KDIB1-1.4010.372.2020.3.BS) to determine whether the provisions of Article 12(3j) and Article 15(4i) of the Corporate Income Tax Act will apply to the adjustments...
Obligation to prepare transfer pricing documentation for a continued guarantee agreement in 2019. – DKIS position
On 22 September 2020. The Director of National Treasury Information issued an individual interpretation (ref. 0111-KDIB1-2.4010.250.2020.1.AW) to determine whether the Company is required to prepare transfer pricing documentation for a guarantee transaction concluded...
Obligation to prepare local transfer pricing documentation for the in-kind contribution of an organized part of the enterprise – DKIS interpretation
On 17 July this year. The Director of National Treasury Information issued an individual interpretation, ref. 0111-KIDIB1-1-4010.153.2020.5.ŚS in the scope of determining whether an in-kind contribution of an organized part of the enterprise to a limited partnership...
No need to document the dividend payment
In accordance with the amendment to the regulations in force since 1 January 2019, the documentation obligation is subject to controlled transactions of homogeneous nature whose value exceeds certain documentation thresholds. Controlled transaction means identified on...
Withholding tax for making employees available
In an individual interpretation dated August 13th 2020, mark 0111-KDIB1-1,4010,244,2020.1.ŚS Director of the National Revenue Information System decided that payments for making employees available are subject to WHT and the Company will be obliged to collect a...
Payment of the surcharge by a shareholder of the Company is subject to the obligation to prepare transfer pricing documentation – DKIS interpretation
On August 17 this year. The Director of National Treasury Information issued an individual interpretation (ref. 0111-KDIB1-2.4010.166.2020.2.AK) to determine whether the event consisting of adopting resolutions on the obligation of the sole shareholder to make...
No withholding tax on R&D services
In an individual interpretation, mark 0111-KDIB1-3.4010.272.2020.1.APO, the Director of National Tax Information confirmed as correct the company's position regarding the collection of lump-sum income tax (withholding tax) on payments for R&D services. The...
Transfer pricing adjustment – obligation to apply the arm’s length principle at the transaction planning stage
In an individual interpretation of 4 August 2020. The Director of the National Revenue Information Office (KRIiK) stated that the mechanism used by the Company to increase its tax revenues or increase tax deductible costs on the basis of an accounting document other...
Economic strategy and economic conditions as important elements in determining the value of a controlled transaction between related parties – the judgment of the Voivodeship Administrative Court in Szczecin, sign. I SA/Sz 84/20 of 04.06.2020.
The verdict was issued on the grounds of an interpretation case in which the tax authority questioned the amount of revenues indicating their underestimation and therefore considered the prices applied by entities as deviating from market conditions. Therefore, the...
Who submits TPR information in relation to companies within the Tax Capital Group?
Related entities which are subject to the obligation to submit TPR information are companies forming PGK, and not PGK as a taxpayer. Therefore, each of the companies forming PGK is separately subject to the obligation to submit TPR information in relation to the...
How should transactions be grouped for inclusion in TPR information?
For the purposes of TPR information, a given transaction should be identified as a controlled transaction of homogeneous nature within the meaning of Article 11k(2), (3), (4) and (5) of the Act - i.e. in the same way as in local transfer pricing documentation. A...
Can transfer pricing information be signed by an attorney?
Yes. Signing the TPR information by an attorney is allowed on principles similar to signing other information or tax returns. However, other rules apply to signing the statement on preparation of local transfer pricing documentation referred to in Article 11m section...
How should I submit the TPR information?
The TPR form should be submitted to the Head of the Cashier by e-mail. The deadline for submitting the form for 2019 is the end of December 2020. (extended by 3 months due to COVID-19). The electronic pdf form was prepared by the Ministry of Finance and is available...
What is the recharacterisation of the transaction?
Under the amended regulations, the tax authority will be able to perform the so-called recharacterisation of a transaction with a related party and assess the tax consequences resulting from this newly classified transaction. It will also be able to consider that no...
What are the deadlines for reporting on transactions carried out in 2019?
Pursuant to Article 77 point 62 of the Act of 19 June 2020 on subsidies to interest rates on bank loans granted to entrepreneurs affected by the effects of COVID-19 and on simplified procedure for the approval of the agreement in connection with the occurrence of...
What should be reported in the TPR form?
The information on related party transactions to be reported on the TPR form is very detailed and includes, among others 1. Four profitability ratios of the entity for which the TPR form is submitted, i.e. return on sales at the operational and gross profit level,...
Companies may apply for tax interpretations in cases of regulations concerning information on tax schemes – another WSA ruling in this case
Once again, the Provincial Administrative Court (WSA) in its judgment (ref. I SA/Po 39/20) issued on 13 May this year confirms that the regulations concerning information on MDR tax schemes may be subject to individual interpretations. In the disputed case, the...
No obligation to submit TPR-C information for national transactions below the documentation thresholds – DKIS interpretation
On 24 July this year. Director of National Treasury Information issued an individual interpretation (ref. 0111-KDWB.4010.7.2020.1.KK) to determine whether there will be an obligation to provide information on transfer prices for those transactions that meet the...
Tax loss and exemption from the obligation to prepare transfer pricing documentation – DKIS interpretation
On 21 July this year. The Director of National Treasury Information issued an individual interpretation (ref. 0111-KDIB2-1.4010.184.2020.2.AR) concerning the determination of the possibility to take advantage of the exemption from the obligation to prepare local...
Withholding tax for complex services
In the judgment of 17 June 2020, Case No. I SA/Sz 65/20, the Regional Administrative Court in Szczecin indicated that the condition for the application of Art. 21 of uCIT is not the result of payments from a separate (spontaneous) legal relationship, as its...
A company whose one shareholder is a State-owned enterprise is obliged to prepare transfer pricing documentation – DKIS interpretation
On 10 July 2020 Director of National Treasury Information issued an individual interpretation (ref. 0111-KDIB1-2.4010.210.2020.1.AW) to determine whether Article 11n(5) of the Corporate Income Tax Act excluding the obligation to prepare transfer pricing documentation...
The deadline for notification of information on beneficial owners to the Central Beneficiaries (CRBR) has been extended
The Ministry of Finance, in a communication of 14 July 2020, reported that due to technical problems with the functioning of the Central Register of Real Beneficiaries (CRBR), the notification deadline had been extended until the difficulties were resolved. The new...
The withdrawal of a shareholder from a commercial law company in the form of voluntary redemption of shares, regardless of its nature (voluntary or compulsory) implies the obligation to prepare transfer pricing documentation
In the individual interpretation of 10 June 2020 The Director of the National Revenue Office* explained that if a shareholder joins a commercial company in the form of a voluntary redemption of shares, regardless of its nature (voluntary or compulsory), there will be...
Purchasing intermediation services are services similar to consultancy, advertising and market research’ and are consequently subject to WHT and tax deductible limits – position of the WSA in Rzeszów, dated June 4th 2020, ref. I SA/Rz 236/20
The judgment relates to the case concerning a complaint against an individual interpretation. The case concerned a Company specialising in tin recovery. It manufactures pure tin and offers tin alloys and soldering alloys. Due to the fact that industrial waste, which...
Extension of transfer pricing deadlines and obligation to comply with the transaction marketability clause
On 23 June this year, the Act of 19 June 2020 on interest rate subsidies on bank loans granted to entrepreneurs affected by COVID-19 and on simplified procedure for approval of the agreement in connection with COVID-19's application, the so-called Shield 4.0, was...
No obligation to collect tax on interest in the absence of data
In the judgment of 3 January 2020 ref. III SA/Wa 1276/19 The Provincial Administrative Court in Warsaw ruled that a payer is not obliged to collect withholding tax on interest and discount payments on Eurobonds in a situation where he does not know the identity of the...
Insurance services are not subject to WHT
Insurance services which are purchased from non-residents are not subject to flat-rate WHT. In the judgment of the Voivodship Administrative Court in Bydgoszcz of 22 January 2020, ref. ISA/Bd 655/19 the court held that insurance services cannot be considered as...
Dobrowolne umorzenie udziałów
On 10 June 2020 The Director of National Revenue Information issued an individual interpretation (ref. 0112-KDIL2-2.4011.287.2020.2.AA), the subject of which was, among other things, to determine whether voluntary redemption of shares in a capital company without...
Loss from a source of revenue and exemption from the obligation to prepare transfer pricing documentation for PGK
On 1 June 2020 Director of the National Revenue Administration issued an individual interpretation (ref. 0111-KDIB1-1.4010.140.2020.1.BK) regarding the exemption from the obligation to prepare local transfer pricing documentation pursuant to Article 11n point 1 of the...
For the third time, the Monetary Policy Council has reduced the NBP interest rates
On 28 May 2020. the Monetary Policy Council (hereinafter referred to as the MPC), by Resolution No. 7/2020 of the Monetary Policy Council of 28 May 2020 on the reference rate, interest rate on refinancing loans, term deposit interest rate and the rediscount rate and...
The concept of industrial equipment in the light of withholding tax
According to Article 21, section 1 of the Corporate Income Tax Act, "the use or right to use an industrial device, including a means of transport, commercial or scientific device" falls within the subject scope of withholding tax. Therefore, as a rule, receivables...
The deadline for submitting information on agreements concluded with non-residents expires
Pursuant to Article 82(1)(2) of the Tax Ordinance, all entities conducting business activity are obliged to draw up and submit information on agreements concluded with non-residents within the meaning of foreign exchange law (ORD-U). As a rule, the information of the...
A cash contribution to a company is subject to the obligation to document – DKIS interpretation
On 15 May 2020 the Director of the National Revenue Administration issued an individual interpretation (ref. 0111-KDIB1-2.4010.81.2020.2.MS) to determine whether a cash contribution is subject to the obligation to prepare transfer pricing documentation. In the...
Obtaining the right to tax exemption of the dividend paid – the position of the Director of KIS is different from the view of the Voivodship Administrative Court in Wrocław
On 11 May 2020. Director of National Revenue Information in the interpretation 0111-KDIB1-3.4010.43.2020.2.BM stated that in order to take advantage of the exemption referred to in Article 22.4 of the CIT Act, it is insufficient to meet the conditions indicated in...
Adjustment of transfer prices and adjustment of tax deductible costs – DKIS interpretation
On 8 May 2020 Director of the National Revenue Administration issued an individual interpretation (ref. 0111-KDIB2-1.4010.55.2020.2.MK) to determine whether transfer pricing adjustments made by related parties will entitle the Company to adjust tax deductible costs...
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