Declaration on preparation of transfer pricing documentation17 July 2020

From January 1, 2019, taxpayers are required to submit an electronic statement on the preparation of transfer pricing documentation. For taxpayers whose tax year is a calendar year, the deadline for submitting the declaration for 2019 is September 30, 2020.

Declaration on the preparation of transfer pricing documentation

Due to the possibility of non-application of the provisions in force from January 1, 2019 to transactions made in the tax year beginning after December 31, 2017 (in the case of a fiscal year compliant with the calendar – for transactions made in 2018), many taxpayers make the first statement in the new form only in 2020.

The statement discussed in this article applies to transactions made from 2019, the documentation obligations of which are determined on the basis of the amended regulations in force from January 1, 2019.

NEW DEADLINE FOR SUBMISSION OF DECLARATION

The deadline for submitting a statement on the preparation of transfer pricing documentation based on the amendment to SHIELD 4.0 has been extended:

  • until December 31, 2020 – if the deadline for submission was from March 31, 2020 to September 30, 2020,
  • by 3 months – if this period expires from October 1, 2020 to January 31, 2021.

Statement to the Tax Office – who signs?

The person obliged to sign the declaration using a trusted signature or qualified signature is the taxpayer. Depending on its type, the statement is signed by other people:

  • for individual business activity – a person conducting business activity
  • at a general partnership or a civil law partnership – the company’s partners,
  • at a partner company – company’s partners or the management board,
  • at a limited partnership – the company’s partners,
  • limited joint-stock partnership – general partners (SKA),
  • for a limited liability company or joint-stock company – the management board according to representation,
  • in the case of a liquidated company – a liquidator,
  • in the case of a company undergoing restructuring proceedings – a trustee or administrator.

The declaration may not be signed by an attorney or legal representative of the taxpayer. The lack of such a possibility results directly from the amended art. 11m of paragraph 3 point 2 of the CIT Act / art. 23y paragraph. 3 point 2 of the PIT Act.

Declaration on preparation of tax documentation – scope of responsibility

In the statement on the preparation of transfer pricing documentation, effective from 1 January 2019, the related entity not only declares that it has prepared transfer pricing documentation, but also ensures that the transfer prices of controlled transactions covered by the documentation have been set on market conditions, i.e. those that would be agreed between unrelated entities. This is a significant change compared to the statements made in previous years.

Submission of an incorrect statement or failure to make it is subject to criminal and tax liability. Sanctions for such acts can reach 720 daily rates, which in 2020 means liability up to PLN 21 million.

Declaration on preparation of tax documentation – submission form

The declaration is made only by means of electronic communication. Regardless of the way of signing (trusted signature or qualified signature), the statement should be sent via the ePUAP platform to the electronic mailbox address of the relevant tax office, using the “General letter to public entity” / “Other letter” option.

Are you required to prepare transfer pricing documentation for 2019? Are you wondering how to determine the market value of transactions carried out? Don’t wait! Contact specialists and familiarize yourself with our offer.

Dominika Widła