The provisions of the Tax Ordinance, as amended as of January 1, 2019, introduce an obligation to inform the tax authorities about tax schemes (Mandatory Disclosure Rules), referred to in the new provisions as the “Arrangements”.

The new regulation is a consequence of transposition into the Polish regulations of  the Council Directive (EU) 2018/822 of 25 May 2018 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements.

The new regulations cover a much wider scope of reporting than the directive. The notification obligation includes not only cross-border but also domestic schemes. In the opinion of the Ministry of Finance, the justification for introducing this duty is to provide the tax administration with quick access to information on tax planning activities undertaken by the taxpayers.

The following arrangements will have to be reported:

• marketable arrangements - solutions that can be used by many entities without a need to be substantially customised and
• other arrangements.

The following entities will be obliged to report the arrangements:

• taxpayers,
• the taxpayers’ advisors - participating and advising in the development of the Arrangement as well as in some cases:
• other entities that provided direct or indirect help, support or advice regarding the development, marketing, organization, making available to be implemented or supervision of the implementation of the Arrangement (e.g., notary public).

⇒ Note:

Failure to report the Arrangement or its reporting after the deadline will be punished by a fine imposed on the basis of the Tax Penal Code.