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Reporting of ‘domestic’ tax schemes (MDR) returns from 1 July 2023

The state of epidemic emergency was introduced in Poland from 16 May 2022. Previously, the epidemic state was in force. By virtue of the Resolution of the Minister of Health of 14 June 2023 on the cancellation of the state of epidemic emergency in the territory of the Republic of Poland (Journal of Laws of 2023, item 1118), as of 1 July 2023, the state of epidemic emergency in relation to SARS-CoV-2 infections is cancelled in the territory of the Republic of Poland.

The abolition of the epidemic emergency will have significant effects affecting the tax obligations of businesses, among others, with regard to the reporting of MDR tax schemes.

As a reminder, under the provisions introduced under the so-called “Anti-Crisis Shield”, the reporting deadlines for domestic schemes whose reporting deadline had not expired by 31 March 2020 were suspended until the 30th day after the revocation of the ongoing state of emergency.

From 1 July 2023, the normal reporting deadlines will be restored. This means that all MDR tax schemes implemented from March 2020 onwards will have to be reported within 30 days of the aforementioned date.

Failure to comply with MDR reporting obligations or to meet deadlines may result in:

  • financial penalties of up to PLN 10 million;personal risks for Board Members and other individuals required to report MDR (from 1 July 2023,
  •  these may amount to a maximum of PLN 34,560,000).

Due to the approaching deadline for reporting schemes, all entities that may be subject to MDR reporting obligations should review their transactions for a period of min. 3 years. It may be worth considering the introduction of an internal MDR procedure to monitor arrangements on an ongoing basis.

If you need support in reporting MDR schemes or introducing an internal procedure – please contact us.