Country-by-Country Reporting for the year 2024

CbC-R

The obligation to file CbC-R report concerns entities which operate in groups that:
a. prepare consolidated financial statements,
b. conduct cross-border operations,
c. earned during the previous year consolidated income, which exceeded the equivalent of EUR 750 million or PLN 3,250 billion.
 
In general, CbC-R should be delivered by the ultimate parent company in the group. As far as Poland is concerned, this rule applies to entities with registered office or seat of management here.
 
Yet, if a Polish taxpayer is not an ultimate parent company, it may still be obliged to submit CbC-R, when:

·    the state where the ultimate parent company’s management or registered office is located, has suspended the automatic exchange of information,

·    its ultimate parent company is not subject to such an obligation in the country where its management or registered office is located,

·    the authorities of the country where the ultimate parent company’s management or registered office is located, did not sign an agreement on the exchange of information with Poland in the period of 12 months counting from the end of the reporting year,

·    no other group entity has been indicated to prepare such information.

 
Notification about the entity in charge of reporting (CbC-P)

Moreover, every Polish taxpayer (Polish permanent establishments included) belonging to a group (as defined above) required to prepare CbC-R will be bound to inform the Head of National Fiscal Administration that:

·    it is an ultimate parent company; or

·    indicate the entity in charge of reporting and the country in which the information will be provided.

CbC-R as well as CbC-P notification should be submitted only via electronic communication means.

Deadlines

CbC-R must be provided in the period of 12 months counting from the end of a reporting year. 
For instance, report for 2024 should be delivered by the end of 2025.
 
The Polish taxpayers are required to notify tax authorities about the entity in charge of preparing 
CbC-R within three months of the end of the financial year of the group. Please note that for the financial year 2024 CbC-P form will have to be submitted by 31st March 2025.
 
Penalties
 
Taxpayer who does not fulfil the obligations with regard to Country-by-Country reporting could be subject to a fine of up to PLN 1 million – depending on the operations of the entity, its financial capacity and the kind and extent of the violation – imposed by way of decision of the Head of National Fiscal Administration.
 
Please also be informed, that in accordance with Article 80d of Penal and Fiscal Code, pursuant to which “any taxpayer who provides false, incomplete or inconsistent with the possessed data, information about Group entities will be subject to a fine of up to 240 daily rates” (i.e. of up to PLN 14.9 million in 2025). In case of minor tax offences taxpayer will be subject to a fine for fiscal offenses (i.e. of up to PLN 93 thousand in 2025). 
 
What actions should be undertaken?
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1. First of all, please verify if the obligation to prepare CbC-R applies to you (as a group).

2. Then, please decide which entity from the group will be in charge of preparing the required information.

3. Please notify the tax authorities of the entity and of the country where the relevant entity will be in charge of reporting for FY 2024.

 

If you have any questions regarding the CBC-R / CBC-P obligations or require support in their fulfilment, please do not hesitate to contact Forvis Mazars Tax Advisory Department.