Domestic entities whose consolidated revenues, within the meaning of the accounting regulations, in the territory of the Republic of Poland and outside its territory, 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 the place of business of subsidiaries and foreign companies belonging to the capital group in the tax year, within 12 months from the end of the tax year of the domestic entity for which the report is submitted (the so-called country-by-country reporting).
This report is submitted on the CIT-CBC form . An entity exceeding the above-mentioned the threshold of EUR 750 million is also required to prepare local documentation along with a transfer pricing analysis (comparability analysis) and group documentation.
The obligation to submit CbC was introduced in Polish tax law on January 1, 2016. Its main assumption is to prevent tax avoidance. OECD countries together with G20 countries developed 15 BEPS measures. According to the arrangements, these activities were to counteract the erosion of the tax base and the transfer of profit. As a result, the above-mentioned countries undertook to implement the CbC reporting obligation in their legal regulations. The CBC-R report and the CBC-P notification are subject to entities carrying out intra-group transactions whose value of consolidated revenues in the year preceding the documented year exceeded the amount of PLN 3,250,000,000 or EUR 750,000,000. The difference between CBC-R and CBC-P is that the CBC-R report should be submitted by the parent company from the group of related entities, based in Poland.
This report contains information on the identification data of all entities included in the group of related entities. In addition, it should contain detailed information about the entities included in the group, such as the revenues achieved in the documented financial year, the number of employees, income tax paid and due, and the amount of share capital.
By the end of 12 months from the end of the financial year, the taxpayer is obliged to submit the report electronically to the Head of the National Revenue Administration. On the other hand, the CBC-P notification is submitted by each member of the group of related entities. The notification must be submitted within three months from the end of the financial year.