Publication of reports on tax paid foregone
President Andrzej Duda signed an amendment to the Accounting Act and certain other acts, which will introduce, among other things, an obligation for large companies to publish reports on income tax paid.
As envisaged by the amended legislation, the obligation to prepare, publish and make available the income tax report will be incumbent on: (1) the ultimate parent entity, if the revenues recognised in the annual consolidated financial statements of that entity exceed for each of the last two financial years the amount of PLN 3,500 million; (2) an independent entity, if the revenues recognised in the annual financial statements of that entity exceed for each of the last two financial years the amount of PLN 3,500 million. This obligation will apply only to top-level parent entities and stand-alone entities that are corporations, joint-stock corporations, or general or limited partnerships, all of whose partners bearing unlimited liability are corporations, joint-stock limited partnerships or companies from other countries with a similar legal form to these companies. The Act also imposes an obligation on subsidiaries and branches to publish and make available an income tax report on their own. The reports and statements will be submitted by the managers of the entities, within 12 months of the balance sheet date, to the competent court register and posted on the websites of these entities.
As pointed out by Łukasz Kupryjańczyk, tax adviser and partner at Thedy & Partners, the income tax report is to be prepared as at the balance sheet date. The information contained in the report is to be presented for each tax jurisdiction in which the activities of the group or stand-alone entity may be subject to income tax on the basis of its registered office, permanent establishment or regular business activities. The reports will be filed behind the KRS and whether these obligations are complied with will be verified by auditors. Entrepreneurs will be penalised with sanctions for failing to comply with these obligations. The new rules will apply for the first time to the income tax report for the financial year beginning after 21 June 2024.
– This is not an easy time for entrepreneurs. The ever-changing regulations and increasing reporting obligations present them with yet another challenge. It’s another piece of bureaucracy they have to navigate, having already been through many other regulatory innovations. I hope that the government will ensure that regulations that create new obligations are created alongside those that liberalise business and support economic growth and innovation, comments Łukasz Kupryjańczyk