Amendments to the PIT and CIT Acts – changes concerning payments to accounts not included on the VAT whitelist and TP reporting

How will the rules on the tax deductibility of expenses change?

Under the current PIT and CIT provisions, the ability to treat an expense as tax deductible is restricted, among other circumstances, where payment of an invoice issued by an active VAT taxpayer is made to an account which, as at the date on which the transfer is instructed, is not included in the register referred to in Article 96b(1) of the VAT Act (the so-called VAT whitelist), or where payment is made without applying the split payment mechanism when its application is mandatory.

With effect from 1 January 2027, these restrictions will be abolished. Consequently, the irregularities referred to above will no longer result in the relevant expense being excluded from tax-deductible costs. The restriction will, however, continue to apply to payments made without the use of a payment account where the applicable regulations require payment to be made through such an account.

It should be noted, however, that this change concerns only the consequences arising under the PIT and CIT legislation. Obligations resulting from other regulations will remain applicable, including, in particular, those relating to potential joint and several liability for a supplier’s outstanding VAT liabilities.

How will the rules for filing TPR information change?

The amendments also provide for significant simplifications to TPR reporting. The key changes include:

• removal of the statement concerning transfer pricing documentation and the arm’s length nature of transfer prices – the TPR information will no longer include a statement confirming that the local transfer pricing documentation has been prepared in accordance with the actual circumstances and that the transfer prices covered by that documentation have been determined on an arm’s length basis;
• reduction in the scope of data reported by micro and small enterprises – these entities will no longer be required to disclose general financial information in the TPR information;
• simplification of the rules for signing TPR information – currently, TPR information must generally be signed by the head of the entity or by a designated member of a multi-member governing body, while the ability to act through an attorney-in-fact is limited to advocates, attorneys-at-law, tax advisers and statutory auditors. Following the amendments, TPR information may also be signed by an attorney-in-fact holding a UPL-1 power of attorney, without restriction to the above professional groups (for example, an accountant or a finance department employee).

The simplified TPR filing rules will apply to information for tax years beginning after 31 December 2025. Accordingly, for taxpayers whose tax year corresponds to the calendar year, the new rules will apply as early as to the TPR information for 2026, due for filing by 30 November 2027.

How Forvis Mazars can support you?

The Forvis Mazars Team can support you in preparing for the application of the new regulations, in particular by reviewing payment procedures, assisting with the preparation and verification of TPR information, and aligning the TPR signing process with the new requirements. Should you wish to discuss the implications of these changes for your business or the scope of support available, please contact your Forvis Mazars Team.