Hasznos

Group TAO subjectivity

The choice of group corporate taxation should be considered by all companies that would

share their losses or would be exempt from the application of transfer pricing rules due to

their related transactions. Companies can announce the transition to group corporate

taxation between November 1 and 20.

TAO group members can still be resident taxpayers who:

they have the same balance sheet date,

their accounts are compiled based on the same accounting standards,

the Tao. TV. 2/A. Paragraph (3) of § § 12 requires that there is a majority influence in

accordance with the provisions of Act V of 2013 on the Civil Code [Ptk.], in the framework of

which there is a relationship based on voting rights of at least 75 percent,

and the group member is not yet a member of another group corporate taxpayer.

The creation of the TAO group and the joining of the existing group must be jointly applied

for by the future group members in writing to the NAV. Taxpayers generally have the

opportunity to do this between the 1st and 20th of the penultimate month of their tax year.

The same deadlines must also be taken into account in the event that a taxpayer joins an

already existing group corporate taxpayer as a new member.

Advantages of the TAO group

Transfer price exemption: group members can be exempted not only from the transfer price

documentation obligation, but also from the provisions regarding the application of the

standard market price in their transactions with each other.

Applicability of accrued losses at group level: the accrued loss incurred by a group member

during the TAO group period can be used as a reduction of the tax base even in the tax year

in which it was incurred, so that profitable group members can also benefit proportionally

from it.

The previous tax benefits are not lost: a taxpayer can still claim the tax benefit he received

before becoming a member of the group as a member of the tao group at the level of his

individual tax base, as long as he fulfills the conditions of the benefit as a member of the

group.

Group-level interest deductibility rules: the modifying item is divided among the affected

group members in proportion to the net financing cost.

The discount of the growth tax credit is not available for group corporate taxpayers, nor for

taxpayers planning group membership (NAHI cannot be applied in the tax year preceding the

first tax year of group membership). If a group member previously used the possibility of this

deferment (and the period for validation has not yet expired), then the previously unpaid

amount of tax on the amount of the growth tax credit becomes due in a lump sum on the

date of creation of the group membership.

Source: NAV