18 July. on the website of the Ministry of Finance, a further explanation of the revised rules on transfer pricing documentation was published.
It deals with a number of issues relating to the practical aspects of making a declaration of drawing up the local documentation according to the new rules – the obligation in question under Article 11m Act dated 15 February 1992 on corporate income tax (Journal of Laws of 2019, item 865, ‘CIT Act’) and — under Article 23y Act dated 26 July 1991 on personal income tax (Journal of Laws of 2018, item 1509, as amended, ‘PIT Act’).
The rules that entered into force on the day 1 January 2019, so covering the declarations to be made by taxpayers for the financial year 2019.
The only exception may apply to those entities that have decided to apply the new transfer pricing regulation already in the tax year starting after the 31 December 2017 This is important that the deadlines for the submission of a statement by these entities end ninth one month after the end of the financial year.
This means that the earliest time to make such a declaration will be 30 September This year.
Tax payers who have decided to make use of the new rules on documenting transfer prices should already be interested in the content of the statement in question. Under Article 11m CIT Act and Article 23y The PIT Act, and the related formalities, particularly concerning the correctness of electronic signatures, so that at the time of its submission this does not prove difficult
Declaration of drawing up the local transfer pricing documentation, as amended at the beginning of the year, is an electronic document, submitted by electronic means of communication in accordance with the regulations Tax Ordinance.
Its objective is to confirm that the obliged entity has drawn up a local transfer pricing documentation and that these prices are set on terms that would have been determined by unrelated parties. These are the substantive elements of the statement contained under Article 11m CIT Act and under Article 23y PIT Act.
The published explanation contains examples of such a statement.
In addition, the explanation also shows the formal elements, not directly arising from the provisions of the Income Tax Act, indicated as required. This is the data of the reporting entity i.e.:
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- full name — for statements made by natural persons not engaged in economic activities;
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- the tax identification number and, in the absence thereof, another identification number, together with its type;
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- the address (country, locality, postal code, street, building number, premises number) of the seat or management and, in the case of natural persons, the address of residence;
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- an indication of the function performed in the entity by each person signing the declaration.
The Department’s explanations do not clearly determine whether the content of the statement should be included in the general letter at the place of the text box or as a separate annex to the letter.
The information provided by the Ministry of Finance also emphasizes who is obliged to sign such a declaration by means of a trusted signature or qualified certificate (signature). According to the provisions of the Income Tax Act, it is the head of the unit as defined Act dated 29 September 1994 on accounting (i.e. Journal of Laws of 2019, item 351, hereinafter: ‘Accounty Act’), which means:
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- the member of the management board or other management body and, if the body is multi-member, the members of that body, excluding the representatives established by the body;
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- in the case of a public company and a civil partnership, shareholders in the company's affairs;
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- in the case of a partner company, the shareholders in the company’s affairs or the board of directors
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- as regards the limited partnership and the limited partnership, the subcontractors in charge of the company;
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- in the case of a natural person pursuing an economic activity, that person shall be considered as the head of the unit; that provision shall apply mutatis mutandis to persons exercising a free profession;
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The liquidator, as well as the administrator established in the restructuring procedure, and the successor manager referred to shall also be considered as the unit manager. In the Act dated 5 July 2018 the management of a succession of a natural person or the person concerned under Article 14 that law which made the notification in question under Article 12(1c) Act dated 13 October 1995 the rules on the registration and identification of taxable persons and payers (Journal of Laws of 2019, item 63).
Where several persons meet the criteria of the head of the unit or cannot be defined, the declaration shall be made and signed by each person entitled to represent. However, the Income Tax Act and the explanation do not solve the doubts that arise towards persons acting as a prosecutor, especially since the CIT and PIT Act do not allow a statement to be made by a proxy. Instructions for dressing an electronic document more than one A trusted signature using an ePUAP account is available here .
Tax payers who have decided to make use of the new rules on documenting transfer prices should already be interested in the content of the statement in question. Under Article 11m CIT Act and Article 23y The PIT Act, and the related formalities, particularly concerning the correctness of electronic signatures, so that at the time of its submission this does not prove difficult