TP deadlines likely to be extended by 3 months
Deadlines for compliance with the transfer pricing obligations are likely to be extended again.
On 25 February 2021, the Transfer Pricing and Valuation Department informed that the Public Finance Commission of the Sejm adopted an adjustment to the bill of amendment of the excise duty act and some other acts (form 860).
The deadlines for submission of the transfer pricing information and the statement on preparation of a local file are extended as follows:
- until 30 September 2021 – for those entities which are obliged to report and document transfer prices in the period between 1 February 2021 and 30 June 2021,
- by 3 months – for those entities which are obliged to report and document transfer prices in the period between 1 July 2021 and 31 December 2021.
Thus, for entities whose tax year overlaps with the calendar year, the deadline for compliance with the obligation to prepare local transfer pricing file and statement on preparation of such file and submission of the transfer pricing information (TPR) would be postponed from 30 September 2021 to 31 December 2021.
The deadline for preparation of the master file will be (as was the case with the facilitations introduced in June 2020) 3 months after the end of the postponed deadline for submission of the statement of local transfer pricing file. Therefore, for taxpayers whose tax year overlaps with the calendar year, the deadline will fall on 31 March 2022.
The legislation process is pending – we are waiting for the act to be passed.
TRANSFER PRICING CHALLENGES IN 2021
We would like to remind you that in 2021, the Polish taxpayers are going to face a number of transfer pricing novelties (some of them were described in one of our previous publications).
The greatest challenges to be faced this year are:
- the impact of COVID-19 on transactions concluded between associated enterprises,
- the requirement to update comparative analyses (especially if the last ones were made for 2017)
- new requirements for documenting transactions with entities from tax havens,
- changes to TPR.
Even though the deadlines are likely to be extended, please remember that compliance with the transfer pricing obligations can be very time-consuming and should not be postponed until the last moment, so …
The Andersen Transfer Pricing Team have substantial experience preparing transfer pricing documentation and comparative analyses, development and verification of transfer pricing policies and procedures, as well as preparing models of settlements between associated enterprises.
Should you have any questions or doubts regarding the issues discussed here, we are ready to assist you.