Until 31 January 2021 certain CIT taxpayers are obliged to submit first reports on applied payment dates in commercial transactions. On 1 January 2020 provisions of the Act on amending certain acts in order to limit payment blockages introducing regulations mobilizing debtors to pay within the set deadline and discouraging them from imposing unjustified, extended payment deadlines entered into force.
The following entities are obliged to report:
- tax capital groups - regardless of the amount of revenues generated;
- real estate companies - regardless of the amount of revenues generated;
- taxpayers other than tax capital groups - if their annual revenues exceeded EUR 50M.
Reports shall be provided by the managers of the units - board members or other management authority, general partners, liquidators, etc. In the case of a tax capital group, a representative of each company is obliged to submit a report.
Reports shall be submitted to the Minister of Development, Labor and Technology until 31 January of the subsequent year in electronic form, in accordance with the template provided. First reports should be submitted for the year 2020 which means that the first submission deadline falls on 31 January 2021.
Although it does not result from the literal wording of the provisions, we believe that there are arguments to claim that real estate companies are obliged to submit their first reports for the year 2021, i.e. by 31 January 2022 and not for the year 2020. The definition of a real estate company was introduced to the income tax acts as of 1 January 2021.
Non-compliance will be penalized with a fine. Obstructing or preventing compliance with reporting obligations by the representative will also be penalized.
In addition, if suspicion is raised that the statement contains unreliable or untrue information, the Minister of Development, Labor and Technology will provide information about such suspicion to the Chairman of the Office for Competition and Consumer Protection, who will be able to use it to analyze the probability of excessive delay in the payment of cash benefits.
What about foreign entities registered for VAT purposes in Poland?
In our opinion, the obligation to submit reports on applied payment dates shall not apply to foreign entities who have their registered seat and generate revenues outside the territory of Poland.
These entities are not listed in the catalogue of obliged entities referred to in art. 27b paragraph 2 of the CIT Act. The above provision refers to the regulation applicable to taxpayers within the meaning of art. 3 paragraph 1 and 2 of the CIT Act, submitting tax returns (e.g. CIT-8) in which they show revenues subject to Polish tax jurisdiction.
If you need support in reporting on applied payment dates or have any questions, please do not hesitate to contact our experts:
Head of Tax, Board Member
Tax Manager - Attorney-at-law