For many companies June is the time of profit distribution decisions. We wish to draw your attention to potential anti-avoidance requirements that may apply in connection with reportable arrangements (tax schemes).
The Polish implementation of mandatory disclosure rules (MDR) requires paying or withholding agents to report passive income (dividends, interest, royalties, fees for certain services) paid to foreign recipients where the per-recipient threshold of PLN 25 million is exceeded over one calendar year.
For dividends, the 30 days’ time to make the MDR-1 disclosure generally starts to run already on the declaration of dividend (adoption of authorising resolution), and not the payment itself.
A violation of MDR reporting obligations may cause high penalties to be imposed under the Fiscal Penal Code on individuals in charge of tax compliance in the company and/or on its management board members, with the penalties capped at over PLN 40 million.
We therefore advise you to verify passive income distributions in 2025, including any dividend plans, to ensure MDR compliance.
If this issue pertains to your business and you are interested in our assistance, please contact us.
This blog post is provided for general information purposes to keep you up-to-date with changes in tax law, tax rulings by authorities, case law of courts and interesting commentaries. Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions resulting from reliance on such information.