On 31 August 2021 the Director of National Revenue Information (“Authority”) issued the private tax ruling, ref. 0111-KDIB1-2.4010.231.2021.2.MS, relating to the recognition on form TPR of domestic controlled transactions that are exempt under Article 11n(1) of the CIT Act.

The ruling was requested in connection with the question of TPR presentation of homogeneous controlled transactions which in total exceed the reporting threshold but some of which fall within the reporting exemption applicable to domestic controlled transactions under Article 11n(1) of the CIT Act (or Article 23z(1) of the PIT Act).

The Authority ruled that:

  • form TPR does not have to show a transaction which is exempt pursuant to Article 11n(1) of the CIT Act, if its value does not exceed the reporting thresholds set out in Article 11k(2);
  • a transaction that is exempt under Article 11n(1) of the CIT Act must nevertheless be reported on form TPR if its value exceeds the reporting thresholds set out in Article 11k(2).

As a reminder, taxpayers must use form TPR to disclose the following information about each controlled transaction that is exempted under Article 11n(1): category, value, subject-matter, and any transfer pricing adjustments made.

If this issue pertains to your business and you are interested in our assistance, please contact us.

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