MDR – changes from July 1, 2020 and new reporting dates in relation to COVID-19

The changes in the Tax Ordinance on MDRs concern: introduction of the number of the tax scheme (NTS), the number of the foreign tax scheme (NFTS), the element of the definition of one of the special recognition features has been changed to: the recipient of the payment has a place of residence, registered office or management in the territory or in the country applying harmful tax competition, indicated in executive acts issued on the basis of the provisions on personal income tax and corporate income tax and in the EU list of jurisdictions reluctant to cooperate for tax purposes adopted by the Council of the European Union. At the same time, the MF is required to publish this list in its Official Journal. The scope of information submitted in the case of natural persons has also changed. From now on, it is the promoter or beneficiary who instructs the assistant to carry out the activities within the scope of his activity in relation to the tax scheme to inform him in writing about the NTS of that tax scheme, enclosing a confirmation that the NTS has been assigned, at the latest on the day preceding the execution of those activities. The scope of the information submitted, the summons in connection with the NTS, the delivery of the NTS was also changed. Currently, the information on using the tax scheme is signed by: a natural person – in the case of a taxpayer who is a natural person, a person authorized by a foreign entrepreneur to represent him in a branch – in the case of a taxpayer who is a foreign entrepreneur with a branch operating in Poland or a person authorized to represent him – in the case of other taxpayers. In addition, a special power of attorney may be granted for some of the cases related to ‘MDRs’.

At the same time on 1st July 2020 the Finance Minister published a list of „tax havens” of the Council of the European Union to which special procedures apply as part of the MDRs. These are the Republic of Fiji, Guam, Cayman Islands, Palau, Sultanate of Oman, Trinidad and Tobago, American Samoa. As you can see, this list is different from the lists of tax havens as defined by the Income Tax Acts.

In addition, according to the COVID-19 related expert reports, the deadlines relating to the MDR0s do not start but are suspended from 31 March 2020 until the cancellation of the emergency and coronaviral outbreak, but no later than 30 June 2020. This concerns, in particular, the deadlines for providing information on the tax scheme (MDR-1), information on the beneficiary of the tax scheme (MDR-3) and quarterly information on the availability of the standardised tax scheme (MDR-4), as well as the notice on the tax scheme pursuant to art. 86b § 6 and art. 86d § 3 and 5 of the Tax Ordinance (MDR-2). These rules apply to both cross-border and noncross-border tax schemes (the so-called national tax schemes).