Extended deadline for preparing transfer pricing documentation

Deadline for preparing transfer pricing documentation extended.

On March 15th 2018 a decree on extension of deadlines related to transfer pricing documentation was published (Dz.U. 2018 poz. 555). The decree is applicable to deadlines falling in 2018 and 2019.

The decree reflects taxpayers’ reservations related to the previous tight deadline of three months. According to the decree, the due date for fulfilling duties related to transfer pricing documentation falls on the last day of the ninth month after the end of the fiscal year.

This means that for taxpayers whose tax year is identical with calendar year, the due date will be September 30th. The duties in question are:

• completion of transfer pricing documentation
• submission of a statement on completion of transfer pricing documentation to the Tax Office
• submission of a simplified statement on transfer pricing (CIT-TP) to the Tax Office

Although the deadline have been extended, the taxpayers should not postpone the preparation of the documentation, as the process may be onerous and time consuming.

The Ministry of Finance is also working on amending CIT Act. The intention is to simplify and reduce obligations involved in transfer pricing documentation. It is likely that the changes will come into force retrospectively from January 1st 2018.

Anna Drzyzga
MDDP Outsourcing