Cross-border schemes

If, before December 31, 2020, the user performed any activities that are part of a cross-border tax scheme or obtained the resulting tax benefit, the deadline for submitting information on the application of the tax scheme (MDR-3) is April 30, 2021.

What schemes does the obligation apply to?

• Cross-border tax schemes for which the first implementation activity was made in 2019 or 2020, or a tax benefit was obtained in 2019 or 2020, as long as the deadline for submitting MDR-3 was after the introduction of an epidemic emergency or an epidemic;
• Cross-border tax schemes for which the user has already submitted MDR-3 in 2019 or the first quarter of 2020 – this is related to the repeated reporting of cross-border tax schemes.

What is the MDR-3 reporting deadline for 2020 CIT related schemes?

In connection with the extension of the deadline for submitting the CIT-8 declaration for 2020 to June 30, 2021, we believe the deadline for submitting MDR-3 has also been extended for cross-border schemes for which CIT is the predominant tax. However, the Minister of Finance has not taken a position in this regard.

What are the reporting rules as of January 1, 2021?

In the case of cross-border tax schemes, when after January 1, 2021 the user performs any activities that are part of a cross-border tax scheme or obtained a tax benefit resulting from it, the expiry of the deadline is determined on general principles, in accordance with art. 86j of the Tax Ordinance, i.e. on the date of submitting the tax declaration appropriate for the tax prevailing in the scheme.

Who is obligated for report?

Only the user / users are obligated to report. Each user is obliged to submit its own form – one user in a scheme cannot exempt another user from the obligation to submit MDR-3.

Non-cross-border schemes (national)

The deadline for submitting MDR-3 for non-cross-border schemes is suspended until the 30th day after the repeal of the epidemic threat and state. However, we recommend submitting reports on an ongoing basis to avoid accumulation of reports after the deadline is unfrozen.

What schemes does the obligation apply to?

Non-cross-border (national) tax schemes for which the first implementation activity was performed in 2019 or 2020, or a tax benefit was achieved in 2019 or 2020, as long as the deadline for submitting MDR-3 was after the introduction of an epidemic emergency or epidemic, as well as schemes for which the first implementation activity was performed in 2021 or a tax benefit was obtained this year.

Who is obligated to report?

Only the user/s. Each user is obliged to submit its own form – one user of a scheme cannot exempt another user from the obligation to submit MDR-3.

Who signs the MDR-3?

From July 1, 2020 MDR-3 may be signed by:

• a natural person – in the case of taxpayers who are natural persons;
• a person authorized by a foreign business to represent it in a branch – in the case of a taxpayer that is a foreign business with a branch operating in Poland;
• person(s) authorized to represent – in the case of other taxpayers;
• a holder of power of attorney cannot sign MDR-3, but it is possible to submit it (technical transfer to the Head of KAS – National Revenue Administration) via a proxy.