News / The end of the month is the deadline for submitting a statement on preparation of transfer pricing documentation for the year 2018.
Taxpayers who decided to take advantage of the new documentation principles for the 2018 transactions are obliged to submit a transfer pricing statement having the new, broader content. In addition to the statement on preparing and keeping transfer pricing documentation, the taxpayer is obliged to incorporate an assurance about the arm’s length nature of the transactions contained in the documentation. Significantly, the statement must be made, otherwise sanctions under the Penal Fiscal Code will be applied.
On 19 September 2019 the Ministry of Finance published explanations concerning the content and method of submitting new transfer pricing statements, based on article 11m of the CIT Act or article 23y of the PIT Act having taken effect on 1 January 2019 (which regulations also apply to taxpayers that decided to choose the new documentation principles in relation to the tax year starting after 31 December 2017).
The explanations contain 21 questions and answers referring to major issues, e.g. the place and method of submitting the statement, individuals entitled to electronically sign it, technical aspects of filing/sending the statement electronically. Remarkably, the statement submitted in the new format cannot be filed in writing.
In addition to the explanations, the Ministry of Finance presented a model of a new transfer pricing statement. The model is of auxiliary nature and in no way is it absolutely binding on the reporting entity.