Changes have been introduced to the reporting requirements for contracts with non-residents as defined in currency law (Tax Code Article 82(1)(2)). The reporting is done using form ORD-U.
By law, a taxpayer is generally required to report their contracts with non-residents in the following situations:
- where there are direct or indirect associations amounting to at least 5% between the parties and the total amount payable or receivable under such contracts with the same non-resident has exceeded the equivalent of EUR 300K in the tax year;
- where the contracts are with a non-resident who has an undertaking, branch or representative office in Poland and the single value of the payables or receivables has exceeded the equivalent of EUR 5K.
A new provision has been added (Tax Code Article 82(1c)), with effect as of 1 January 2022, stipulating that the above requirements do not apply to entities under the obligation to file the transfer pricing report on form TPR. This exemption, however, is not applicable to taxpayers and unincorporated partnerships who are engaged in direct or indirect transactions with tax havens (as referred to in Article 23za(1) and (1a) of the Personal Income Tax Act and Article 11o(1) and (1a) of the Corporate Income Tax Act).
The new law applies where contracts with non-residents are to be reported after 31 December 2021. And such reports (ORD-U) are due within three months after the end of the tax year reported on.
What that means is that ORD-U will not have to be filed for the tax year ended in December 2021 if, during that time, you:
- had such transactions with non-residents which are otherwise reportable using ORD-U; and
- had transactions which are reportable using form TPR (transfer pricing report); and
- did not have any direct or indirect transactions with tax havens such that would be required to be reported using form TPR.
If you do not satisfy the last of the above conditions, i.e. you are required to file form TPR for direct or indirect transactions with tax havens, you will also have to make ORD-U reporting.
If these issues pertain 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.