On 16 February 2018 The Ministry of Finance's website publishes the announced extension of the statutory deadline for drawing up tax records and preparing simplified transfer pricing reports. This information should be of interest to all taxpayers who are currently struggling to draw up documents for the time being. first according to the new requirements applicable from 2017.
The deadline for drawing up documentation resulting from the revised Income Tax Act was set at the end of 3 months after the end of the tax year. There have been numerous signals from taxpayers about the considerable nuisance of this solution.
Especially since it is necessary to draw up reliable documentation according to the new rules to involve considerable work, time and often also financial resources.
In an effort to adapt to the new requirements, taxpayers also face numerous technical difficulties, linked to short time to complete the necessary information to produce documentation and reports. In addition, doubts remain as to the practical implementation of the requirements that are being implemented over and over again. first.
According to the reasons indicated by the Ministry for the implementation of the planned cases, the MF takes into account these problems arising on the part of taxpayers and plans to resolve the issue in the form of an extension of the basic deadline, as reported in the MF information:
"Therefore, in line with the principle of simplification of the tax system and with a view to the important interests of taxpayers, it is proposed to extend by about half a year the time limits associated with the fulfilment of the above transfer pricing obligations."
This means that taxpayers would have not until the end of March but until the end of September to draw up the so-called "new documentation" of the taxpayer 2018 (if the tax year corresponds to the calendar year).
The extended deadline is to apply to obligations arising in terms of transfer prices in accordance with the rules in the year 2018, and therefore with regard to the documentation produced for 2017.
In this respect, it would be a change in the retroactive right, but it is acceptable from a legislative point of view, since it is a change in the tax law in favour of the taxpayer. According to the announcement, the extended deadline will also apply in 2019 for documents to be drawn up for the year 2018.
At present, the project is at the stage of internal arrangements. The expected date of issue of the Regulation was set for February 2018, and therefore within 2 weeks should be expected the correct text of the Regulation.
These announcements should be assessed as an appropriate step towards not so much facilitation as to allow for timely fulfilment of the transfer pricing obligations imposed by the revised rules. Any changes in this topic will be kept up to date.
Link to MF official message: www.finanse.mf.gov.pl
Author:
Leszek Dutkiewicz
Partner at Russell Bedford. From 2011 related to Russell Bedford Poland.
In years 2008 – 2011 worked for leading consulting companies (Ernst&Young, KPMG, BDO) providing tax advisory services. He specializes in tax and economic law, primarily in international tax law, tax proceedings, VAT and transaction prices.
Author of a publication on tax, civil and international law issues. Lecturer in tax law training.
He has legal education, in 2008 graduated from the Faculty of Law and Administration of the Jagiellonian University.