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Poland: Mandatory disclosure of cross-border tax arrangements, proposed amendment

Poland: Mandatory disclosure of cross-border tax

Draft legislation amending the mandatory disclosure rules on 5 February 2020 was submitted to the Parliament.

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The draft bill would introduce an obligation to report to the head of the tax administration (KAS) information about cross-border tax arrangements when the first step in the implementation has been or will be taken between 26 June 2018 and 31 March 2020. Such reporting would need to be done in accordance with the new mandatory disclosure rules (MDR) reporting format (that is, under the MDR schema that would be expected to be available in the coming weeks).


Double reporting effect

The proposal means that all cross-border tax arrangements that have already been reported or will be reported until 31 March 2020 (in accordance with the law binding until that date) would need to be reported once again. According to the draft bill, this repeated reporting obligation would result from the need to align (the already existing) cross-border reporting package with a new schema (MDR reporting format) required by the European Commission.

Moreover, the retroactive reporting requirement for the period 26 June 2018 - 31 March 2020 would be extended to “supporters” (i.e., the secondary definition of an intermediary under DAC6).

The draft bill would be effective 1 April 2020. All cross-border tax arrangement numbers issued until then would be deemed to be void.


Reporting deadlines

The deadlines to report (again) cross-border arrangements pursuant to the draft bill would be as follows:

  • Promoters – end of May
  • Users (relevant taxpayers under DAC6) – end of July
  • Supporters – end of August


Other changes

The draft bill includes other technical and procedural changes to the Polish MDR regime. Notably, the information about the use of a tax arrangement (MDR-3), which must be signed electronically by all board members, would no longer need to be physically submitted by one of the signatories (that is, it would be possible for an employee or proxy to submit the form).

Read a February 2020 report [PDF 225 KB] prepared by the KPMG member firm in Poland

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