Changes in transfer pricing for 2022
The legislator has already acclimated us to annual changes in transfer pricing regulations, especially during the Covid-19 pandemic period. Therefore, in order to properly fulfill reporting obligations, it is important to stay up-to-date and be aware of the changes that have been made in this regard for 2022. One of the most important changes is one concerning the deadlines for the preparation of the documentation itself and the related forms.
In the 2022 documentation, Local File documentation should be prepared by the end of the 10th month after the end of the tax year. Therefore, entities for which the tax year corresponds to the calendar year should prepare the documentation by the end of October 2023.
It is worth noting that the deadline for submitting the documentation requested by the tax authorities has been extended from 7 to 14 days, which should be considered a positive change for taxpayers.
The deadline for submitting TPR information (TPR-C/TPR-P) for 2022 is the end of the 11th month after the end of the fiscal year. Similarly, this means that when an entity’s fiscal year coincides with the calendar year, the deadline for filing these forms expires at the end of November 2023.
In the case of group documentation of the so-called Master File, the deadline for its preparation is the end of the 12th month after the completed tax year.
As we have already mentioned, the changes also apply to the content of the TPR form itself.
In the new version of the form, it will be possible to indicate the status of a micro or small entrepreneur, which reduces the obligation to indicate benchmarking information. Please recall that in 2022, taxpayers that had the status of a micro or small entrepreneur within the meaning of the Law of March 6, 2018. Entrepreneurs Law in the previous fiscal year, will not be required to prepare a comparative analysis. It should be noted that the exemption applies to entities, other than those transacting with entities with headquarters, management, or residence in the territory of so-called tax havens.
The TPR form shall also include a statement that the local documentation was prepared by the actual state of affairs and that the transfer prices covered by this documentation were determined on the terms that unrelated entities would have agreed among themselves.
Previously, the statement with a similar scope was a separate document submitted to the Head of the Tax Office relevant to the taxpayer.
The form in question for 2022 is to be submitted to the Head of the Tax Office relevant to the taxpayer, and not to the Head of the National Tax Administration, as before.
It should be noted that the TPR form for 2022 can no longer be signed by a proxy unless they are an attorney, legal counsel, tax adviser, or auditor.
Should you need assistance in identifying your documentation obligations or preparing transfer pricing documentation, we would be pleased to assist you.