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Poland – leader in implementation of Mandatory Disclosure Requirements

On May 25, 2018, the Council of the European Union formally adopted new mandatory disclosure rules (MDRs) for qualifying intermediaries and relevant taxpayers. As of July 1, 2020, intermediaries or – in some cases – taxpayers, will be required to disclose to their tax authorities information on reportable cross-border arrangements. Despite this application date, reportable cross-border arrangements, the first step of which is implemented between June 25, 2018 and July 1, 2020, must also be reported, by August 31, 2020.

Poland implemented the new regulations as the first country in Europe. The new law requires regular reporting from January 1, 2019. Moreover, it was extended also to domestic arrangements and results in substantial reporting burden for intermediaries and taxpayers supported by substantial financial penalties for missing reporting (even 21,6 mln PLN!). Polish Minister of Finance issued 100 pages explanations to the law published originally on 4 pages. The explanations create even more questions related to the proper implementations of the law.