Report on payment terms in commercial transactions for 2023

Corporate income taxpayers with income earned in 2022 exceeding the equivalent of €50 million are required to prepare and submit by April 30, 2024 a report on the payment terms used in 2023 in commercial transactions.

Obligated entities

A report on the payment terms used in commercial transactions last year must be filed by certain corporate income tax (CIT) taxpayers.

This applies to CIT taxpayers:

in which the value of revenue earned in the tax year that ended in the calendar year preceding the year in which individual taxpayer data is made public exceeded the equivalent of EUR 50 million, and

who were included in a statement published by the Finance Minister by September 30 of the year for which the report is submitted.

The value of €50 million is converted into PLN according to the average EUR exchange rate announced by the National Bank of Poland on the last working day of the calendar year preceding the year in which individual taxpayer data is made public.

Scope of reporting

According to the regulations, the report on payment terms in commercial transactions should include:

• the value of monetary benefits received in the previous calendar year on the date specified in the contract,
• the value of monetary benefits fulfilled in the previous calendar year within the deadline specified in the contract,
• the value of monetary benefits not received in the previous calendar year within the deadline specified in the contract, for which the deadline was exceeded by:
  • not more than 5 days
  • 6 to 30 days
  • 31 to 60 days
  • 61 to 120 days
  • more than 120 days
• the value of monetary benefits not fulfilled in the previous calendar year within the deadline specified in the contract, for which the deadline was exceeded by:
  • not more than 5 days
  • 6 to 30 days
  • 31 to 60 days
  • 61 to 120 days
  • more than 120 days
• the percentage of individual monetary benefits not received and not fulfilled in the previous calendar year in the total value of cash benefits.

Main principles

Reported monetary benefits should be related to the criteria of fulfillment/non-fulfillment and receipt/non-receipt in the year for which the report is submitted. However, the report should not include benefits for which the claim is time-barred.

The report submitted for 2023 should include the values of monetary benefits fulfilled/received in 2023 and not fulfilled/received within the contractual deadline in 2023, which were due in that year. Accordingly, the 2023 report also includes monetary benefits from business transactions entered into before 2023 (excluding time-barred positions).

The report does not include commercial transactions whose exclusive parties are entities belonging to the same capital group. The values of monetary benefits included in the report should be reported in the Polish currency. The values of monetary benefits expressed in a foreign currency are translated into Polish currency in accordance with the accounting principles adopted by the entity.

The report includes commercial transactions, the object of which is the delivery of goods or the provision of services against payment, if the parties conclude it in connection with the performance of business activity.

Parties to a commercial transaction may include entrepreneurs from EU member states, EFTA member states – parties to the EEA Agreement or the Swiss Confederation, as well as branches and representative offices of foreign entrepreneurs. Note that as of January 1, 2021, UK entrepreneurs are not entities referred to in Article 2 of the Law. Thus, transactions with UK entrepreneurs entered into as of January 1, 2021 are not commercial transactions within the meaning of the Law, and as a result, monetary benefits from these transactions are not reportable in the report. However, contracts to which a branch or representative office of a foreign entrepreneur (including from the UK) is a party may be a commercial transaction.

If, in at least one item of the report submitted, the data has changed by at least 10% in value, the entity is required to submit a correction to that report. The correction of the report can be submitted in the same manner as the report is submitted. The correction must be accompanied by an appropriate justification for the change in data.

Deadline

Obligated entities are required to file the report on the applicable payment terms for 2023 by April 30, 2024. The deadline applies to the calendar year, regardless of the fiscal year adopted by the taxpayer. You can only submit the report electronically.

Managers of entities (management) who are required to file the report are responsible for submitting the report on time. The report may be submitted by proxy.

Our support

Check out our tax compliance services or contact us directly. We are here to make running your business easier.