We would like to inform you about the upcoming deadlines for:
Country-by-Country report (CBC-R) is a reporting mechanism set out in the Act of 9 March 2017 on the exchange of tax information with other countries. According to it, entities belonging to large multinational groups are obliged to provide the National Tax Administration with tax information related to this group of entities.
The entities obliged to submit CBC-R reports include those whose consolidated revenues (balance sheet revenues) in the reporting financial year exceeded:
- PLN 3.25 billion – if the capital group prepares consolidated financial statement in PLN or;
- EUR 750 million – if the capital group whose parent company has its seat or management board in Poland prepares consolidated financial statement in a currency other than PLN.
Conversion of threshold figures for the purposes of CBC reporting is made in accordance with the guidelines set out in Article 82(2)(2) of the Act on the exchange of tax Information with other countries:
- if the parent company has its seat or management board outside the territory of the Republic of Poland – the conversion is made according to the rules set out by the country or territory in which the parent company has its seat or management board (if no conversion rules are set out in that country, the exchange rate set out below applies);
- if the parent company has its seat or management board within the territory of the Republic of Poland – the conversion is made at the last exchange rate published by the European Central Bank on the last day of the fiscal year preceding the reporting financial year.
Companies that are members of capital groups whose results are consolidated in the financial statement of the group obliged to file a CBC-R report are required to submit a CBC-P notification. In the CBC-P notification the company must indicate the CBC-R reporting entity and the country in which this report will be submitted.
The submission of the CBC-P notification should be made within 3 months after the end of a financial year for which a consolidated financial statement is prepared. Therefore, for most entities the deadline is 31 March 2021.
The submission of the CBC-R notification should be made within 12 months after the end of a financial year for which a consolidated financial statement is prepared.
The CBC-P notifications and the CBC-R report should be submitted in electronic form and signed with a qualified electronic signature. The forms are available at the following website: podatki.gov.pl. Failure to fulfil this obligation or submitting a declaration that is inaccurate or incomplete may result in a fine of up to PLN 1 million.
Submission of an ORD-U form for 2020 is obligatory for entities which concluded agreements with non-residents within the meaning of the foreign exchange law:
- having personal or capital links (at least 5% of the voting rights). Agreements that were concluded in the tax year with the same non-resident and the sum of receivables or the sum of liabilities resulting from these agreements exceeded the equivalent of 300,000.00 EUR are taken into account;
- having an enterprise, branch or representative office in the territory of the Republic of Poland. The aforementioned agreement is subject to the reporting obligation if the one-off value of receivables or liabilities resulting from such an agreement exceeded the equivalent of 5,000.00 EUR.
The ORD-U form should be drawn up and sent to the competent authority within three months from the end of the tax year. In most cases the deadline is 31 March 2021. The ORD-U form may be submitted in electronic form. It is available at the following website: podatki.gov.pl.
If you have any additional questions about tax or require further information, please contact your relevant contact person who will forward your enquiry to the department:
Partner / Attorney at law (PL)
Specialisation: Tax law
Head of getsix Tax & Legal
getsix Tax & Legal
Our specialist tax advisors, headed by Mrs. Aneta, are at your disposal. You will find the contact form on the getsix website.