The Minister of Finance issued and published in the Polish Journal of Laws a decree, which extends the deadline for issuing information about the agreement conduct with foreign entities which are not Polish tax residents, from 3 to 11 months.
Due to above mentioned changes, the taxpayers, whose tax year is the same as calendar year, have time to submit abovementioned information until November 2023.
Taxpayers are obligated to submit ORD-U when:
1. They take part in managing or controlling the other contractor (directly or indirectly) or taxpayer holds minimum 5% in share capital of second contractor, or
2. third party – which is not a part of a contract – holds at least 5% shares (directly or indirectly) in share capital of both contract parties, or
3. second contractor which is not a Polish tax resident has company, branch or representation in Poland.
The obligation of informing tax authorities about contracts signed with foreign entities applies to the contracts which value exceeds EUR 300.000 when the criteria from point 1 or 2 above are met, and EUR 5.000 when criteria from point 3 are met.
Failure to submit ORD-U information on time, or submission of false information can result in liability under the Fiscal Penal Code.
The Regulation comes into force on 21st March 2023
If you have additional questions about the procedure, deadline or requirements, we invite you to contact Łukasz Bączyk.
