As of 2021 (i) taxpayers with revenues exceeding EUR 50M annually as well as (ii) tax capital groups are obliged to prepare and publicise information about tax strategy realized in the tax year. This in fact means the obligation of preparation of a tax procedure describing the process of carrying out tax compliance. We believe that the tax procedure should encompass:
- General information on the business activity carried out;
- Organizational structure;
- Description of in-house accounting and tax compliance and support from external advisors;
- Description of procedures or methods of handling issues which may result in anti-abusive regulations, such as MDR (DAC-6), CFC, WHT, GAAR;
- Description of responsibility of particular individuals (chief accountant, board members) for tax settlements.
Apart from the tax procedure, the following information should be included in the tax strategy:
- Information on cooperation with the tax administration;
- information on handling tax compliance obligations, to include MDR (DAC-6) reports submitted;
- information about envisaged restructuring;
- information on transactions with related parties and with entities in tax havens;
- information about applications submitted to the tax office for individual tax rulings, binding VAT rate information, binding excise duty information.
Please note that this obligation applies to tax year 2020 which means that first reporting will be due by the end of 2021.
Should your company belong to tax capital group or its revenues exceed EUR 50M annually, please contact us:
Head of Tax, Board Member
Tax Manager – Tax Adviser
Tax Manager – Attorney-at-law