„TP” attribute – transactions with affiliated units

We kindly remind you that along with the release of a new JPK_VAT file, apart from GTU markings, it’s also required that every purchase and sales invoice is marked with a special attribute.

 

The most vital thing from the perspective of correct marking is the „TP” attribute – transactions with affiliated units. The authorities will demand that JPK files contain correct markings both from the perspective of a seller and a buyer.

Explanation for TP symbol:

According to article 32, section 2 of VAT Act by relations that are mentioned in section 1, we understand relations:

1) as defined in:

art. 23m section 1 item 5 of the Personal Income Tax:

Art. 23m section 1 item 5 in accordance with item 4 of the Personal Income Tax:

Affiliated entities, which means:

  1. a) entities among which one of them considerably affects at least one other entity or
  2. b) entities that are considerably affected by:

– the same or other entity or

– a spouse, next of kin or a relative to second degree of natural person that considerably affects at least one entity or

  1. c) companies without legal personality and its associates or
  2. d) the taxpayer and their foreign establishment;

The above-mentioned catalogue suggests that the range of criteria that determine the affiliated entities is vast and doesn’t exclusively refer to equity links.

 

art. 11a section 1 item 5 of the Corporate Income Tax Act;

Art. 11a section 1 item 5 in accordance with item 4 of the Corporate Income Tax Act:

Affiliated entities, which means:

  1. a) entities among which one of them considerably affects at least one other entity or
  2. b) entities that are considerably affected by:

– the same or other entity or

– a spouse, next of kin or a relative to second degree of natural person that considerably affects at least one entity or

  1. c) companies without legal personality and its associates or
  2. d) the taxpayer and their foreign establishment and in case of tax capital group – its member corporation and its foreign establishment

2) based on employment relationship;

3) based on the adoptive relationship.

DEGREES OF KINSHIP

2nd degree of kinship:

  • grandfather,
  • grandmother,
  • grandparents,
  • grandson,
  • granddaughter,
  • grandchildren,
  • brother,
  • sister,
  • siblings,

Connected kinship:

  • stepmother,
  • stepfather,
  • stepson,
  • stepdaughter,
  • stepchildren,

Relatives:

  • wife, husband, marriage
  • husband’s father, wife’s father, husband’s mother, wife’s mother, husband’s parents or wife’s parents, daughter’s husband, son’s wife,
  • spouse’s siblings – husband’s brother, husband’s sister, wife’s brother, wife’s sister,
  • spouses of siblings – brother’s wife, sister’s husband,
  • wife of father’s brother,
  • wife of mother’s brother,
  • husband of mother’s or father’s sister,

EXAMPLES:

  • a holding company – to subsidiary and the other way around but also to a foreign establishment,
  • a company or a natural person – to employee,
  • a company X in which the partner is affiliated as a spouse or next of kin of 2nd degree/relative (e.g. father in law) with a company Y,
  • a company with another company in which the same person is a board member
Legal grounds:
– article 23m section 1 item 5 of the Personal Income Tax
– article 11a section 1 item 5 of the Corporate Income Tax Act

See also