Reporting obligations for domestic tax schemes
A recently published amendment to the Health Ministry’s regulation extended the COVID-19 state of epidemic emergency until the end of April 2023. It is not known currently whether a further extension is being considered.
The end of the state of epidemic emergency will result in the reinstatement of some tax deadlines previously suspended or extended.
One of the areas so far suspended is the reporting of tax schemes other than cross-border tax schemes (so-called “domestic tax schemes”) under Polish MDR regulations.
To date, under the covid laws, the deadlines for the performance of obligations related to the reporting of such schemes did not begin, and those that began were subject to suspension, during the period from March 31, 2020 to the 30th day following the day on which the state of epidemic emergency and state of epidemic emergency declared in connection with COVID-19 is revoked.
Thus, if the state of epidemic emergency is not further postponed, the deadline for fulfilling any national scheme reporting obligations that have not been performed during the suspension period will already pass on May 30, 2023.
Thus, it is worth reviewing the actions taken over the past few years as soon as possible to make sure that all MDR reporting obligations, if any, have been carried out, and to identify those that will be due at the end of May.
What else?
Along with the deadline for filing the CIT-8 return for 2022, there is also a deadline for the so-called „beneficial owners” to file MDR-3 reports on CIT-related tax schemes. The deadline is June 30, 2023.
MDR-3 reports, i.e. information on the application of a tax scheme, are to be filed by so-called „beneficiaries” who in 2022 performed any activities that were part of a tax scheme or obtained the resulting tax benefit.
The MDR-3 filing obligation within the mentioned deadline applies to cross-border schemes and, if the epidemic emergency is not extended, also to the domestic schemes discussed above. Note that the obligation to report domestic tax schemes may result simply from exceeding certain value thresholds, e.g. non-resident income (revenue) or dividend payments exceeding the PLN 25 million threshold.
Again, it is important to look at actions taken in the past year to identify possible MDR-3 reporting obligations.
Next steps?
It is worth remembering that failure to comply with MDR obligations within the above deadlines may result in sanctions, including heavy fines.
We will be happy to support you in analyzing your MDR reporting obligations – in doing so, we will draw on our own accumulated experience and market knowledge.
If necessary, we will also guide you through the entire reporting process, show you which reporting obligations to meet, collect the necessary data, prepare and submit documents.
Feel free to contact us!
Ewa Banaszak
Head of Tax Coordination
