Payment practice report - who has to submit it?


The amended act on counteracting excessive delays in commercial transactions includes a provision that imposes an obligation on the largest taxpayers of corporate income tax to submit reports on their payment practices. Reports are delivered to the minister in charge of the economy. As of January 1, 2021, taxpayers will have to comply with new regulations relating to the preparation of reports, which include information on the payment practices used.

Payment Practices Report - rules effective from January 1, 2021

With the introduction of the new regulations, tax capital groups (regardless of the amount of their income) and enterprises with annual revenues exceeding EUR 50 million are required to submit annual reports on their payment practices. The report is to contain information on the value of receivables and liabilities from commercial transactions, broken down into the following payment terms: up to 30, 60, 120 days and over 120 days.

Who is required to report?

The obligation to submit a report on the payment practices used rests with:

  • a member of the management board or a member of another management body;

  • general partner who runs the partnership's affairs - in a limited joint-stock partnership;

  • the manager of each of the companies - in the tax capital group.

Entrepreneurs will have to submit a report for 2020 by February 1, 2021 using the electronic form available on the portal. The report must be submitted on time - if the person required to submit a report on behalf of the entire company fails to do so in a timely manner, he will be subject to a fine.

Benefits of Mandatory Reporting on Payment Practices
  • publishing information on how to settle trade liabilities by the largest companies in Poland;

  • presenting themselves by the largest corporate income tax payers as reliable contractors;

  • reducing the risk of entering into business relationships with unreliable partners who often force their contractors to extend payment periods.

A collective list of submitted reports will be published by the Minister of Development, Labor and Technology in the Public Information Bulletin.