MDR – retrospective Mandatory Disclosure Rules

Mandatory Disclosure Rules which oblige enterprises to report, among other things, activities which bring tax advantages, came into force on 1 January 2019.

We would like you to know that although the amending statute came into force at the beginning of 2019, the domestic laws introduce retrospective mandatory disclosure rules meaning that you have to report past tax schemes. Retrospective mandatory disclosure rules apply to activities done back in 2018. The disclosure becomes mandatory depending on the type of activity:

  • cross-border tax schemes  are reportable if the first step of their implementation was taken after 25 June 2018.

  • tax schemes other than cross-border schemes (i.e. domestic schemes) are reportable if the first step of their implementation was taken after 1 November 2018.

Depending on the company's function, the deadline for retrospective reporting expires on:

  • 30 June 2019 – if it is a promoter

  • 30 September 2019 – if it is a user

Using this opportunity, we would like to remind you that also your day-to-day, standard business activities which do not bring tax advantages to the company may be regarded as a tax scheme that has to be reported, e.g. a payment exceeding PLN 25 million to a non-resident.

In this context, we emphasise that you are obliged to inform the Head of the National Tax Administration about your tax schemes. Sanctions for failure to follow mandatory disclosure rules are heavy (up to PLN 21.6 million), so we recommend analysing your transactions to see if they may be reportable.

If you have any questions or doubts about the mandatory disclosure rules, Rödl & Partner's experts are at your service.

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