The Ministry of Finance has just published their proposed amendments of transfer pricing regulations under the Polish Deal. The goals behind the suggested amendments are, among others, to make it easier for taxpayers to meet their reporting obligations and simplify the local file.
The Organisation for Economic Co-operation and Development (hereinafter: OECD) has published the long-awaited Guidance on transfer pricing implications of the COVID-19 pandemic (hereinafter: Guidance). It includes comments and explanatory remarks that both taxpayers and tax administrations should take into account in evaluating the implementation of transfer pricing policies in the face of extraordinary economic conditions caused by the COVID-19 pandemic.
This article is going to offer insight into some of the latest changes brought by the Regulation of the Minister of Finance, Funds and Regional Policy of 18 December 2020 amending the regulation on transfer pricing information in personal income tax and corporate income tax to be reported in TPR-P and TPR-C forms. The said provisions have been in force since 1 January 2021 and apply to transfer pricing reporting for a tax year commencing after 31 December 2019.
There has been a lot of talk about changes in transfer pricing regulations over the last 3 years.
Transfer pricing is no longer a purely theoretical issue, but a factor to be taken into account on a daily basis in transactions with related entities. The number and nature of changes that taxpayers have to face in this area is quite challenging. And even though the most recent changes have entered into force as of 2019, taxpayers may decide to apply them to their tax documentation for 2018, as well.
At the beginning of the year significant changes were introduced in the provisions of the Corporate Income Tax Act, i.a. in the scope of the obligation to charge a flat rate income tax at source in connection with payment of remuneration to foreign entities.
As it usually happens with changes introduced into the tax law, on the quiet and through the back door a significant change is made as for the moment of including the effects of the issued (or received) invoice correction in corporate income tax/personal income tax calculation. Why is this moment so crucial?
From a board member's point of view, an entrepreneur's or that of a foreigner delegated to develop the company's branch in Poland, the subject question is of fundamental meaning. The answer, as is often the case with taxes, is unambiguous. It all depends on how apt you are to take on extra risks and how much spare time you may allow yourself to spend on solving tax riddles…
