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MDR and other procedures

TLA Kancelaria > Specializations > MDR and other procedures
Arrangements

Professional preparation and implementation of MDR procedure in Your company

Mandatory disclosure rules came into effect on January 1, 2019, and were incorporated into the Tax Ordinance Act of August 29, 1997. The changes impose new responsibilities on both taxpayers and tax advisory bodies. As specialists, we provide professional preparatory training for companies, audits in the field of MDR identification, and ongoing support for clients in reporting. We develop all procedures related to report submission in detail. In consultation with the client, we select the best methods for identifying arrangements and implement actions appropriate to the situation, and we continuously verify the internal procedures applied. We ensure that the entire staff is adequately prepared to implement actions in compliance with MDR requirements.

Do you think reporting doesn't apply to Your company? Those who implemented the following models thought the same:
  • Changing the terms of cooperation from an employment contract to the provision of services under a sole proprietorship (self-employment).
  • Utilizing 50% tax-deductible costs for employee authors.
  • Modification of settlements resulting in the qualification of income as realized from activities in the Special Economic Zone (sale of sets including non-zone products, income from tooling sales).
  • Modification of delivery terms in triangular transactions aimed at avoiding VAT liability in Poland.
  • Modification of settlement terms with related entities aimed at minimizing the impact of expense deduction limitations (Article 15c of the CIT Act).
  • Modification of settlement terms resulting in the avoidance of withholding tax, the creation of settlement schemes within a consortium and/or through the use of cost-sharing agreements, leading to, for instance, the elimination of VAT tax liabilities.
Does mandatory disclosure rules sound complicated? Do the definitions below leave you confused? Allow us to translate them for you.

Arrangement

Arrangement

  • meets the main benefit test and has a general hallmark, or
  • has a specific hallmark, or
  • has another specific hallmark.

Marketable arrangement

Marketable arrangement

  • is an arrangement that can be implemented or made available to more than one user without the need to modify its essential assumptions, particularly regarding the type of activities undertaken or planned within the framework.

Cross-border arrangement

Cross-border arrangement

is an arrangement that meets the cross-border criterion and:

  • meets the main benefit test and has certain general hallmarks, or
  • has a specific hallmark.

User

User

  • is an entity to whom the arrangement is made available, or in which the arrangement is implemented, or who is prepared to implement the arrangement, or who has undertaken an action to implement such an arrangement.

Intermediary

Intermediary

  • is an entity advising clients, even if this entity does not have a residence, seat, or management within the country, that develops, offers, makes available, or implements an arrangement or manages the implementation of an arrangement.

Supporting entity

Supporting entity

  • is an entity that has undertaken to provide, directly or through others, assistance, support, or advice regarding the development, organization, availability for implementation, or supervision of the implementation of an arrangement.

Taxpayers without appropriate knowledge may unknowingly implement an arrangement that requires reporting. It’s important to be cautious, as the penalty for non-compliance can be as high as 41 279 040 PLN.

How can we assist you?
  • On-site preparatory training at the client's premises or online - Indication of potential obligations of entities (within the Group) of various natures;
    - Indication of possible actions to minimize the scope of obligations;
    - Indication of actions related to fulfilling the reporting obligation;
    - Indication of examples of activities that may be subject to reporting.
  • Audit of implemented arrangements - Identification of implemented arrangements (indicating the intermediary, user, supporting entity, and their obligations, as well as necessary actions/deadlines);
    - Justification for the lack of necessity to report "sensitive" activities that authorities may attempt to classify as an arrangement;
    - Presentation of a report confirming due diligence in the reporting process.
  • Implementation / inspection of internal procedures - Defining the responsibility principles for individual employees;
    - Indication of methods for identifying arrangements;
    - Indication of actions to be taken upon the identification of an arrangement;
    - Conducting training sessions and workshops to prepare employees for fulfilling their obligations - verifying employee awareness;
    - Simulating the implementation of an arrangement within the Company/Group.
  • Ongoing support in reporting - Identification of reporting obligations for ongoing activities;
    - Indication of the entities responsible for reporting;
    - Indication of necessary actions and deadlines;
    - Support in the electronic submission of information regarding the mandatory disclosure rules;
    - Reporting of arrangements “on behalf of the client” under professional confidentiality exemption.