Please be advised that, based on the Ordinance of the Minister of Finance dated 16 February 2023 amending the Ordinance of the Minister of Finance of 24 December 2002 on tax information, the deadline for filing the Information on Agreements concluded with non-residents (ORD-U) will be extended.
According to the adopted regulation, the ORD-U Information for a tax year must be submitted within eleven months, counted from the end of that tax year. The extension of the deadline applies to information filed for a tax year beginning after 31 December 2021. In view of this, the deadline for filing the ORD-U Information for 2022 for most taxpayers is 30 November 2023 (under the previous regulations, it was 31 March 2023). The amended regulation comes into force on 21 March 2023.
Entities that have entered into contracts with non-residents (as defined by the foreign exchange law) are required to file the form for 2022:
- related to affiliated companies (with minimum 5% voting rights). Contracts are taken into consideration having been concluded with the same non-resident, and the balance of receivables or liabilities resulting from these agreements exceeds the equivalent of EUR 300,000,
- related to affiliated companies having an enterprise, branch, or representative office on the territory of the Republic of Poland. Such an agreement is subject to reporting obligations when the one-off value of receivables or liabilities arising from such an agreement exceeds the equivalent of EUR 5,000.
The ORD-U Information takes into account not only agreements (including agreements not documented in writing) concluded in a given tax year, but also agreements concluded in earlier years if they are executed in the tax year for which the ORD-U Information is prepared and based on which receivables or liabilities arose.
Certain entities are excluded from the obligation to prepare the ORD-U Information, i.e. the obligation does not apply to entities that are obliged to file a Transfer Pricing Release (TPR), with the exception of entities that carry out transactions with entities – related or unrelated – that have their registered office, management or place of residence in a so-called tax haven, or with a foreign permanent establishment located in a territory or country applying harmful tax competition.
We point out that entities that have entered into agreements with non-residents in 2022 should verify whether the obligation to prepare and file information on agreements entered into with non-residents (ORD-U) applies to them. We know from experience that verifying the occurrence of the aforementioned obligation, as well as determining the value of the contracts to be reported in the ORD-U reporting, can be a process that requires adequate preparation and time.
Source: article prepared by our cooperation partner TaxAGroup
If you have any questions regarding this topic or if you are in need for any additional information – please do not hesitate to contact us:
CUSTOMER RELATIONSHIPS DEPARTMENT
Head of Customer Relationships
Department / Senior Manager