Please note that the law requires taxpayers who are members of corporate groups and engage in transactions with related parties to make sure their local file (if required) is accompanied by what is called a master file. This applies to companies belonging to a group that:
1) issues consolidated financial statements, and
2) had revenues in previous financial year in excess of PLN 200 million (ca. EUR 44 million).
The master file should be attached to the local file by the end of the twelfth month following the end of the tax year.
For those whose tax year coincides with the calendar, the due date for preparing the master file for 2022 is 31 December 2023.
A master file may be issued by some other group entity, e.g. the parent company. But in such a case the Polish entity is still responsible for ensuring that its content is in accordance with the CIT Act. A master file may be issued in English. However, in the event of a tax audit, the authorities may demand that a Polish translation be provided within 30 days.
We will also remind you that, under Article 56c of the Fiscal Penal Code, failure to attach the master file to the local file is punishable by a penalty of up to 720 day fines, with the penalty being up to 240 day fines if it is attached late.
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.