Tax schemes reporting (MDR) - changes in regulations

MDR reporting - major changes

1. Re-reporting of cross-border schemes

The amendment obliges promoters, beneficiaries and supporters to re-report all cross-border schemes if the first implementation activity took place between 26 June 2018 and 30 June 2020.

The obligation to re-report cross-border schemes applies to schemes for which the relevant information was previously submitted to the Head of the National Tax Administration (KAS) - by virtue of law as of 1 July 2020 issued for such tax scheme number (NSP) becomes invalid.

The deadlines for resubmission of information on cross-border schemes provided for in the amendment have been extended by the Ordinance of the Minister of Finance of 30 June 2020 and are as follows:

• for promoters - 31 December 2020
• for beneficiaries - 31 January 2021
• for supporters - 28 February 2021

Moreover, information on quarterly disclosures of such schemes will also have to be resubmitted by 30 April 2021 if these are standardised schemes completed between 26 June 2018 and 30 June 2020.

The obligation to re-report the cross-border scheme is imposed on the entity which previously provided this information to the Head of KAS (this refers to the situation in which more than one entity was obliged to provide information about the scheme).

2. Other changes

• the change of requirements for signing MDR-3 - this information can be signed by:
  1. a natural person - in the case of a taxpayer who is a natural person,
  2. a person authorised by a foreign entrepreneur to represent him in a branch - if a taxpayer who is a foreign entrepreneur has a branch operating within the territory of the Republic of Poland,
  3. in the case of other taxpayers - a person authorized to representation (instead of all Management Board members); it will still not be possible to sign this information by proxy.

• extension of the scope of the special power of attorney for the MDR needs - the special power of attorney granted in one MDR case will also authorise to act in other cases in this scope.
• extension of one of the special recognition features relating to cross-border payments between related parties included in tax deductible costs, if the recipient of the payment is headquartered in a tax haven, to situations in which the recipient of the payment is headquartered in a country indicated in the EU list of non-cooperative jurisdictions for tax purposes (this list was included in the announcement issued by the Minister of Finance on 7 July 2020).
• the Ordinance of the Minister of Finance of 30 June 2020 also extends the deadlines for the first reporting of cross-border schemes (this refers to situations in which the reporting obligation has arisen or will arise by 31 December 2020). In such a case, the reporting deadlines are to start from 1 January 2021. In addition, the obligation to submit MDR-3 and MDR-4 information on cross-border tax schemes has been extended until 30 April 2021.