CbC

Country-by-country reporting

Domestic entities whose consolidated revenue within the meaning of the accounting regulations, both in the territory of the Republic of Poland and outside it, exceeded the equivalent of EUR 750,000,000 in the previous tax year are required to submit to the tax office a report on the amount of income and tax paid and on the places of business of the subsidiaries and foreign permanent establishments belonging to the capital group in the tax year, within 12 months of the end of the tax year of the domestic entity for which the report is filed (country-by-country reporting).

The report is filed on form CIT-CBC. An entity exceeding the above threshold of EUR 750 million is also required to prepare local documentation together with a transfer pricing analysis (comparability analysis) and group documentation.

The obligation to file CbC reports was introduced into Polish tax law on 1 January 2016. Its main purpose is to counter tax avoidance. The OECD countries, together with the G20 countries, developed 15 BEPS actions. These actions were intended to counter base erosion and profit shifting. As a result, those countries undertook to implement a CbC reporting obligation in their legislation. The CBC-R report and the CBC-P notification apply to entities carrying out intra-group transactions whose consolidated revenue exceeded PLN 3,250,000,000 or EUR 750,000,000 in the year preceding the year documented. The difference between CBC-R and CBC-P is that the CBC-R report should be filed by the parent entity of the group of related parties having its registered office in Poland.

The report contains information identifying all the entities belonging to the group of related parties. It should in addition contain detailed information about those entities, such as the revenue earned in the financial year documented, the number of employees, the income tax paid and payable, and the amount of share capital.

By the end of the twelfth month after the end of the financial year the taxpayer is required to submit the report electronically to the Head of the National Revenue Administration. The CBC-P notification, on the other hand, is filed by every member of the group of related parties. The notification must be filed within three months of the end of the financial year.