By March 31, 2022, all entities operating in Poland whose fiscal year corresponds to the calendar year and belonging to capital groups that are subject to CbC reporting (Country-by-Country Report, CbC-R obligation) are obliged to submit the CbC-P notification for 2021 to the Head of the National Revenue Administration (KAS).
CAPITAL GROUPS SUBJECT TO THE CBC OBLIGATION
Pursuant to the Act on Exchange of Tax Information with Other Countries, the CbC obligation applies to groups of entities whose consolidated revenue in the previous fiscal year exceeded PLN 3,250 million (if the group prepares consolidated financial statements in PLN) or EUR 750 million or its equivalent (in other cases).
The CbC reporting obligation generally rests with the parent company, or the entity designated to prepare and report the information for the group as a whole.
At the same time, it must not be forgotten that the other entities within the group have their own obligation. If the CbC reporting obligation is confirmed, such entities are required to submit their own CbC-P notifications.
By submitting a CbC-P notification, entities indicate the CbC reporting entity, its identifying information, and the state or territory in which the information will be reported.
WHAT IS THE DEADLINE FOR SUBMITTING A CBC-P NOTIFICATION?
The CbC-P notification shall be submitted within 3 months of the end of the reporting fiscal year of the group of entities.
Entities, with a group reporting year corresponding to the calendar year are required to file the CbC-P notification for 2021 by March 31, 2022.
IN WHAT FORM IS THE CBC-P REPORT SUBMITTED?
The CbC-P report shall be submitted exclusively in electronic form using the
e-Deklaracje system.
CONSEQUENCES OF A FAILURE TO COMPLY
According to the Act on Exchange of Tax Information with Other Countries, a taxpayer who has not fulfilled the obligation to submit the CBC-P notification or has submitted a notification that is incomplete or inconsistent with the data held faces a penalty of up to PLN 1 million.
In case of further questions regarding this alert, please contact our TPA experts directly.
Joanna Kubińska
Associate Partner, Head of Transfer Pricing
