„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:
- a) entities among which one of them considerably affects at least one other entity or
- 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
- c) companies without legal personality and its associates or
- 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:
- a) entities among which one of them considerably affects at least one other entity or
- 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
- c) companies without legal personality and its associates or
- 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
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