MDR-3 to be filed by March 31 but there are technical problems

A tax scheme is to be reported using form MDR-1. In addition, in certain cases form MDR-3 must also be filed by the end of the reference period. Unlike MDR-1, MDR-3 must be signed by all management board members and submitted by one of them, and none of this can be done via an agent.

For most schemes from 2019, the MDR-3 filing deadline is 31 March 2020.

When trying to comply with these regulations, companies have been facing numerous technical issues due to incompatibility between some electronic signatures and the MDR gateway. Despite efforts, companies are unable to resolve the problem that arises when you attempt to send an XML file with several electronic signatures via the MDR gateway.

As a member of the MDR Forum affiliated with the Finance Ministry, we requested the Ministry on 4 March 2020 to:

• assign the above-described issue to relevant Ministerial Team for resolution so that managements are able to timely comply with their statutory MDR-3 filing obligations;
• consider issuing a public tax ruling providing that managements will not be punished for untimely filings caused by reasons beyond their control or introducing some other measure to address the problem should the technical issue turn out to need more time to be resolved.

We will keep you up-to-date on this matter. Note also that other filing deadlines than 31 March 2020 may apply in the case of tax schemes relevant for taxes other than corporation tax (CIT) or for taxpayers whose tax years do not coincide with the calendar year. You are advised to review your relevant historical transactions for the existence and timing of the reporting obligation.

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.