On 1 July 2023, the state of epidemic emergency was revoked in Poland by regulation of the Minister of Health. This resulted in the return of a number of important obligations in both labour and tax law. Learn more: End of the state of epidemic emergency – major changes for employers as of 1 July
One of the obligations returning is the reporting of domestic MDR tax schemes. MDR reporting will again become mandatory from 1 August 2023. This obligation had been suspended under the provisions of the so-called Covid Law since 2020. Such status shall remain in force until the 30th day following the date of revocation of the state of emergency, i.e. up to and including 31 July 2023.
When discussing the return of MDR reporting, it is worth noting that from 1 August 2023, all MDR schemes from the entire 3-year suspension period will have to be reported. MDRs from the 3-year period will therefore have to be reported, along with any new ones already existing after the suspension.
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Failure to comply with tax scheme reporting (MDR) obligations may result in severe sanctions. The following financial fines apply for failure to report or other non-compliance with tax scheme reporting:
It is also worth mentioning that, if convicted of a tax offence relating to a breach of the tax scheme reporting provisions, the court may also order a ban on carrying out certain business operations.
On 1 August 2023, the obligation to report domestic tax schemes returns. What does reporting consist of and what is a tax scheme?
In Poland, MDR reporting is carried out under the Tax Schemes Reporting Regulations which are part of the 2019 amendments to the Tax Ordinance (Chapter 11a of the Act). These provisions implement the EU DAC6 Directive but have a broader scope than the Directive.
The legislation recognises two types of tax schemes:
a) meets the main benefit criterion and possesses any of the general characteristics set out, or
b) has a specific identification characteristic,
A tax scheme, on the other hand, is an arrangement that:
Moreover, the obligation to provide information on tax schemes, according to the Act, applies to three categories of entities:
Tax scheme information is submitted electronically to the Head of the National Tax Administration (KAS). The Head of the National Tax Administration assigns a special tax scheme number NSP, unless the tax scheme information contains a NSP assigned by another European Union Member State.
The tax scheme information shall include:
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Tax schemes reporting (MDR)