Approaching deadline for cross-border tax scheme reporting
The end of June and the beginning of July 2020 saw several legal acts amending the tax scheme reporting obligations and deadlines for compliance therewith.
The deadlines for reporting according to amended rules were deferred, but the deferment period ends in December 2020 for the first group of entities obligated to report.
Repeated cross-border tax scheme reporting
1 July 2020 marked the effective date for regulations which imposed the obligation of repeated reporting of cross-border tax schemes already reported to the Head of the KAS (National Fiscal Administration).
The amended regulations require that intermediaries and beneficiaries repeat cross-border tax scheme reporting if the first step was taken between 26 June 2018 and 30 June 2020. This is necessitated by the need to adjust the information to the requirements of the EU law. Poland, having implemented the provisions of Directive 2018/822 very fast, developed forms which did not include all the required information. The obligation to repeat reporting was also imposed on the supporter, i.e. an entity which was not initially obliged to report tax schemes “retrospectively”.
The original deadlines for repeated reporting provided for in the Act were extended under the Regulation of the Minister of Finance of 30 June 2020. Therefore, we remind you of the approaching deferred deadlines for repeated reporting, which are as follows:
- 31 December 2020 – for intermediaries (MDR-1 and MDR-2),
- 31 January 2021 – for beneficiaries (MDR-1),
- 28 February 2021 – for supporters (MDR-1 and MDR-2),
- 30 April 2021 – for intermediaries and supporters with respect to MDR-4 and for beneficiaries with respect to MDR-3.
Please be reminded that the obligation of repeated reporting rests with the entity which made the original reporting, and that the NSPs (tax scheme numbers) assigned to cross-border tax schemes to date were cancelled as of 1 July 2020.
Reporting current cross-border schemes
The Regulation of the Minister of Finance of 30 June 2020 also extended the deadlines for cross-border scheme reporting previously changed by the anti-crisis shields. However, the deadlines for reporting them will soon start anew. Therefore, we remind you of the major dates and related obligations for cross-border scheme reporting:
- MDR-1 and MDR-2: for schemes in which steps were taken giving rise to reporting obligations for intermediary, beneficiary or supporter by 31 December 2020, the deadlines for reporting start running on 1 January 2021,
- MDR-3: if the beneficiary has taken a step which is part of a cross-border scheme or has derived a benefit therefrom by 31 December 2020, the deadlines for filing the tax scheme information are extended until 30 April 2021,
- MDR-4: if the intermediary or supporter provided access for the beneficiary to a standardized cross-border scheme by 31 December 2020, the deadlines for filing the standardized scheme information are extended until 30 April 2021.
The intermediary or beneficiary who contracts works to the supporter by 31 December 2020 are obliged to notify the latter of the scheme by 31 January 2021.
Schemes other than cross-border schemes
With respect to domestic schemes, deadlines for reporting do not start and those running are suspended over the period from 31 March 2020 until the 30th day following the date of revocation of the state of epidemic emergency and epidemics announced due to COVID-19. The information filed during the period of suspension is effective.
Should you have any doubts concerning cross-border or other tax schemes reporting, you are welcome to contact us.