transer pricing, tax, deadlines

Transfer pricing documentation – deadlines

Anna Dąbkowska
transer pricing, tax, deadlines
The taxpayers, whose tax year is different from the calendar one, have only 3 months to prepare the required documentation. The company, which ended the tax year on 30 November 2019, has time to fulfil this duty only until the end of February 2020.

Companies, whose tax year ended between 1 October and 31 December 2019, are obliged to prepare tax documentation and submit relevant transfer pricing information to the tax office within a period of 3 months. This deadline was confirmed by the individual interpretation of the Director of National Revenue Administration Information Centre issued on 22 November 2019.

Production of transfer pricing documentation

Under the CIT Act on transfer pricing obligations, which came into force as of 1 January 2017, the taxpayers who:

  • make transactions with related parties which significantly affect the income or loss of that taxpayer,
  • and at the same time attained revenues or incurred costs, defined in accordance with the Accounting Act, in the amount exceeding the documentation thresholds specified in Article 9a of the CIT Act in the year preceding the tax year,

are obliged to:

  1. prepare tax documentation,
  2. make a statement on preparing and submitting transfer pricing documentation to the tax office,
  3. attach a simplified CIT/TP report to the tax return submitted for that year.

Transfer prices – deadlines

In general, taxpayers had 3 months from the end of their tax year to fulfil the above-mentioned obligations. On 15 March 2018 a regulation, which extended by 6 months the deadlines for fulfilling certain obligations in the scope of tax documentation, came into force. On 1 January 2019 the aforementioned deadlines were again extended due to the introduction of new transfer pricing regulations.

The transfer pricing documentation should be prepared and submitted to the tax offices within:

  • 3 months from the end of the tax year - the deadline applies only to entities preparing documentation under Article 9a of the CIT Act, whose tax year ends in 2019 and deadlines expire in 2020,
  • 9 months from the end of the tax year - the deadline applies to entities preparing documentation under Article 9a of the CIT Act, whose deadlines expire in 2018 or 2019,
  • 9 months for basic documentation and submission of relevant declarations to the tax office and 12 months for group documentation from the end of the tax year - deadlines for entities obliged to prepare documentation according to new regulations implemented on 1 January 2019.

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Agata Nieżychowska
Agata Nieżychowska
Tax Director

Tax Advisory