Poland: reporting obligations
Overview
On January 1, 2019, Poland introduced requirements to report “tax arrangements” following EU Directive 2018/822 of May 25, 2018, which modified the prior EU Directive on Administrative Cooperation 2011/16/EU.
The Polish approach extends beyond EU-mandated requirements in three key ways. First, the implementation date was January 1, 2019 rather than July 1, 2020. Second, domestic arrangements fall within Poland’s scope, unlike the EU Directive. Third, reporting obligations apply not only to intermediaries and taxpayers, but also to “any third party that assists with the implementation, for example, an auditor, accountant, notary public, CFO, bank or other financial institution.”
Reporting Obligations
A “tax scheme” requires reporting under the Polish Mandatory Disclosure Rule Act (MDR Act) when it contains specified characteristics called “hallmarks.” These include schemes fulfilling the “main benefit” test alongside listed general features such as confidentiality requirements or success-fee compensation structures.
Intermediaries bear primary responsibility for reporting to the Head of National Fiscal Administration. The MDR Act defines an intermediary as “any person or entity which creates, offers, makes available, implements or manages the implementation of the tax arrangement,” encompassing tax advisors, attorneys, banks, and financial institutions.
Entities with revenues or costs exceeding PLN 8 million in the previous accounting year must implement internal MDR procedures covering documentation, employee training, and compliance controls.
Reporting obligations shift to relevant taxpayers where no appropriate intermediary exists or where legal professional privilege applies.
Reporting Timelines
When first activity occurs on or after January 1, 2019, reporting must occur within 30 days. Cross-border transactions initiated after June 25, 2018 required disclosure by June 30, 2019, while domestic transactions initiated after November 1, 2018 required disclosure by September 30, 2019.
Consequences of Non-Compliance
Failure to report constitutes a fiscal criminal offense subject to fines up to PLN 21.6 million (approximately €5 million).
Failure to implement required MDR procedures carries fines up to PLN 2 million (approximately €465,000), increasing to PLN 10 million (approximately €2.32 million) if confirmed by final court ruling.
Conclusion
Organizations should understand these obligations comprehensively. While final ministry guidelines were expected by mid-January 2019, the Polish implementation differs significantly from the EU Directive, particularly regarding domestic arrangements and early compliance deadlines.