tax havens

The Ministry of Finance, the Transfer Pricing Forum and the Director of the National Revenue Administration Information Centre in many documents try to interpret the provisions on transactions with the so-called tax havens. Unfortunately, the explanations we receive are not always what the taxpayers want. In the individual ruling of 11 January 2022, the Director of the National Revenue Administration Information Centre presented a position unfavourable for taxpayers regarding the so-called tax haven transactions. How can this affect entities carrying out indirect tax haven transactions?

In 2021, among the taxpayer’s reporting and information obligations for the tax year ending on December 31, 2020, there were reporting on contracts concluded with non-residents within the meaning of the foreign exchange law (ORD-U form) and reporting related to transactions with related entities or contractors from tax havens (TPR form). The obligation to submit the ORD-U information expired on March 31, 2021, and the TPR information on December 31, 2021.

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 Ministry of Finance has published draft tax explanations on transfer pricing regarding presumption and due diligence in transactions with tax haven entities. The draft explanations are now subject to tax consultation that will last until 20 April 2021. This consultation is open to all entities.