On Wednesday, 4 September, the Ministry of Finance published the fifth edition of frequently asked questions (FAQ) about TPR. The FAQ relating to transfer pricing reports is aimed to facilitate tax compliance by taxpayers and simplify the reporting with the coherence of the data increased.
The fifth version of FAQ specifies e.g. which type of the form is filed for TPR adjustment (the same form as for the original information). It has also been clarified who is responsible for filing TPR:
- If the company is dissolved during the tax year – the company itself;
- if the company is acquired by a foreign entity and the books of account are not closed – the acquired company;
- if several companies are acquired within the same time – the acquiring company that should file forms for each company acquired separately.
The authors emphasize that the correct choice of the form (TPR-C or TPR-P) depends on the legal basis for reporting. If an entity is liable to PIT and its reporting obligation arises from art. 23zf of the PIT Act, it files form TPR-P; by analogy – if an entity is liable to CIT and its reporting obligation arises from art. 11t of the CIT Act, it files form TPR-C.
The Ministry of Finance further explains that it should be established whether the entity is
a microundertaking or small undertaking for the needs of selection in box Entity type in section C of form TPR on the basis of the Accounting Act, while the exemption from the obligation to submit results of the comparability analysis or conformity analysis with its local file (for microundertakings and small undertakings) is based on whether the criteria arising from the Law of Entrepreneurs are met.
The announcement about the new edition of FAQ also includes a reference to the Glossary which clarifies terms used in interactive tax forms and e-Deklaracje application.
Please remember that since last year TPR reporting has been made using the Ministry of Finance gateway rather than, as before, using a pdf file and e-Deklaracje. For form TPR-C, a Management Board member who files the form must have a qualified electronic signature and PESEL code contained therein.
If this issue pertains to your business and you are interested in our assistance, please contact us.
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