• for preparation of the transfer pricing documentation,
• for filing of the statement to the tax office that the documentation has been prepared and 
• for submission of the simplified transfer pricing reports (so called CIT/TP and PIT/TP forms).

The Ministry of Finance noticed that the recent amendments of the transfer pricing regulations imposed a lot of obligations on taxpayers for the first time (i.e. the local file and master file documentation, the statement about preparation of the documentation and the simplified reporting form). Moreover, the deadlines for performing these obligations fall in principle for the same day, i.e. the day for filing the annual tax return.

As a consequence the taxpayers obliged to meet these obligations indicate a large amount of work, time and resources required to fulfill the abovementioned duties within the statutory deadline.

In connection with the above, in order to simplify the tax system and due to the importantinterest of taxpayers, the Ministry proposes to extend by about half a year the deadlines for preparing local and master file documentation, as well as for submission of a statement on the preparation of documentation and the simplified CIT/TP and PIT/TP reports - concerning transactions for 2017 and 2018. It is planned to extend these deadlines to the last day of the ninth month after the end of the tax year (as opposed to the current deadline on the date for filing the annual tax return).

The draft regulation was submitted to intra-ministerial consultations. The planned date of issuance of the new Decree is February 2018, although due to the necessary consultations the date of publishing may be postponed to March 2018.

In addition, the Ministry noted that taxpayers had reported recently newer and practical doubts related to, among others, the manner of submitting and completing simplified transfer pricing reports (CIT/TP and PIT/TP). Apart from this, taxpayers raise a number of technical problems impeding the fulfilment of the above-mentioned obligations (including problems related to the submission of simplified reports relating
to non-corporate partnerships not subject to income tax).

With respect to the above, according to the information provided, the Ministry of Finance conducts parallel work on the preparation of an amendment to the current legal provisions, which will allow to significantly reduce and simplify the taxpayers' documentation obligations. As the planned changes are beneficial for taxpayers, the introduction of these provisions is considered with the retroactive effect since 1 January 2018.

We will inform you about any new developments relating to the matters discussed above. In case of any needs for consultation regarding transfer pricing documentation requirements, please do not hesitate to contact us.