TAX STRATEGIES

Information regarding the implementation of the tax strategy for the 2021 tax year (Download PDF, in Polish)

This information has been prepared to fulfil the obligation provided for in Article 27c of the Corporate Income Tax Act, which requires companies subject to corporate income tax to publish their tax strategy.

Arctic Paper Kostrzyn S.A., with its registered office at ul. Fabryczna 1 in Kostrzyn nad Odrą, Tax Identification Number (NIP) 5980003701 is registered in the Register of the District Court in Zielona Góra, Department 8 - Economic Department of the National Court Register, under the number KRS 0000082646. The Company's activities include the production and sale of paper, as well as the generation, distribution, and trading of thermal and electrical energy. The Company’s tax strategy aims to duly fulfil obligations arising from tax laws by timely settling tax liabilities and complying with administrative obligations.

Information on the processes and procedures for managing the fulfilment of obligations arising from tax laws and on the voluntary forms of cooperation with the National Tax Administration, performed by the taxable person

The organisation of the tax obligations fulfilment process in the Company:

The Management Board of the Company oversees the fulfilment of tax obligations.
2. The employees of the Finance Department, in collaboration with employees from other departments, are responsible for fulfilling obligations related to corporate income tax, value-added tax (VAT), excise tax, lump-sum income tax for legal persons, goods and services tax, and property tax, including tax calculations and administrative obligations (such as tax returns filing). They ensure timely payment of the aforementioned taxes and fulfil other administrative duties. The employees of the Human Resources Department, in collaboration with employees from other departments, handle the fulfilment of obligations related to personal income tax, including tax calculations and administrative obligations (such as tax returns filing).
Tax collection and payment are carried out by dedicated employees of the Finance and Human Resources Departments based on the available documentation.

In the course of its business operations, Arctic Paper Kostrzyn S.A. follows tax procedures related to corporate income tax, excise tax, lump-sum income tax for legal persons, value-added tax, personal income tax, and property tax.

The Company has not entered into any cooperation agreements with the Head of the National Revenue Administration referred to in Article 20s of the Tax Ordinance.

Information regarding the fulfilment of tax obligations in the territory of the Republic of Poland, including the number of tax scheme reports submitted to the Head of the National Revenue Administration, categorised by the relevant taxes

The Company's actions aimed at fulfilling tax obligations in accordance with Polish tax law in a correct and timely manner include:

identification of chargeable events;
calculation and payment of relevant taxes to the appropriate tax authority;
preparation and submission of tax-related documents, such as declarations, reports, and information, to the relevant authorities;
preparation of local documentation of transfer pricing;
preparation of benchmarking analyses;
monitoring of transactions and agreements in accordance with applicable regulations for proper reporting of tax schemes.

In 2021, the Company fulfilled its obligations as a taxable person in relation to corporate income tax, value-added tax, excise tax, property tax, and acted as a taxpayer for corporate income tax and personal income tax.

The Company has implemented a tax scheme reporting (Mandatory Disclosure Rules, MDR) procedure. During the reporting period, per the Company’s assessment, it was not obligated to report tax schemes and did not provide information on tax schemes to the Head of the National Revenue Administration.

Information on transactions with related parties exceeding 5% of the total balance sheet of assets

According to the financial statement, the Company has total balance sheet assets amounting to PLN 705,227 thousand. During the reporting period, the following transactions exceeding 5% of the total balance sheet were conducted:

costs related to transportation and marketing invoiced by Arctic Paper S.A.
liquidity management transaction with Arctic Paper S.A.
issuance of a loan repayment guarantee to Arctic Paper S.A.

Information on planned or undertaken restructuring activities that may affect the amount of the taxable person's or related entities’ tax liabilities. podmiotów powiązanych

During the reporting period, there were no restructuring activities undertaken that could impact the taxable person’s or related entities' tax liabilities. There are also no plans for such actions in the future.

Information on submitted requests for general tax rulings, individual tax interpretations, binding rate information, and binding excise information

In 2021, the following requests for individual tax interpretations were submitted:

on the 16th of February, regarding the provisions of the Corporate Income Tax Act;
on the 23rd of March, regarding the provisions of the Corporate Income Tax Act;
on the 5th of July, regarding the provisions of the Excise Tax Act;
on the 20th of October, regarding the provisions of the Goods and Services Tax Act;
on the 10th of November, regarding the provisions of the Corporate Income Tax Act.

The Company did not submit requests for general tax interpretations or requests for binding rate or excise information in 2021.

Information on the settlement of tax liabilities in territories or countries applying harmful tax competition.

During the reporting period, the Company did not settle tax liabilities in territories or countries applying harmful tax competition.

Information regarding the implementation of the tax strategy for the 2020 tax year (Download PDF, in Polish)

Information on the processes and procedures for managing the fulfilment of obligations arising from tax laws and on the voluntary forms of cooperation with the National Tax Administration, performed by the taxable person

The organisation of the tax obligations fulfilment process in the Company:

The Management Board of the Company oversees the fulfilment of tax obligations.
The employees of the Finance Department, in collaboration with employees from other departments, are responsible for fulfilling obligations related to corporate income tax, value-added tax (VAT), excise tax, lump-sum income tax for legal persons, goods and services tax, and property tax, including tax calculations and administrative obligations (such as tax returns filing). They ensure timely payment of the aforementioned taxes and fulfil other administrative duties. The employees of the Human Resources Department, in collaboration with employees from other departments, handle the fulfilment of obligations related to personal income tax, including tax calculations and administrative obligations (such as tax returns filing).
Tax collection and payment are carried out by dedicated employees of the Finance and Human Resources Departments based on the available documentation.

The Company has not entered into any cooperation agreements with the Head of the National Revenue Administration referred to in Article 20s of the Tax Ordinance.

Information regarding the fulfilment of tax obligations in the territory of the Republic of Poland, including the number of tax scheme reports submitted to the Head of the National Revenue Administration, categorised by the relevant taxes

The Company's actions aimed at fulfilling tax obligations in accordance with Polish tax law in a correct and timely manner include:

identification of chargeable events;
calculation and payment of relevant taxes to the appropriate tax authority;
preparation and submission of tax-related documents, such as declarations, reports, and information, to the relevant authorities;
preparation of local documentation of transfer pricing;
preparation of benchmarking analyses;
monitoring of transactions and agreements in accordance with applicable regulations for proper reporting of tax schemes.

In 2020, the Company fulfilled its obligations as a taxable person in relation to corporate income tax, value-added tax, excise tax, property tax, and acted as a taxpayer for corporate income tax and personal income tax.

Information on transactions with related parties exceeding 5% of the total balance sheet of assets

According to the financial statement, the Company has total balance sheet assets amounting to PLN 666,508 thousand. During the reporting period, the following transactions exceeding 5% of the total balance sheet were conducted:

costs related to transportation and marketing invoiced by Arctic Paper S.A.
received funding from Arctic Paper S.A.
liquidity management transaction with Arctic Paper S.A.
issuance of a loan repayment guarantee to Arctic Paper S.A.
provision of funding to Arctic Paper Investment GmbH.

Information on planned or undertaken restructuring activities that may affect the amount of the taxable person's or related entities’ tax liabilities.

Information on submitted requests for general tax rulings, individual tax interpretations, binding rate information, and binding excise information

In 2020, the following requests for individual tax interpretations were submitted:

on the 6th of February, regarding the provisions of the Corporate Income Tax Act;
on the 20th of October, regarding the provisions of the Property Tax Act.

The Company did not submit requests for general tax interpretations or requests for binding rate or excise information in 2020.

Information on the settlement of tax liabilities in territories or countries applying harmful tax competition.

During the reporting period, the Company did not settle tax liabilities in territories or countries applying harmful tax competition. .