I. Introduction
This document is intended to fulfil the obligations under Article 27c of the Corporate Income Tax Act of 15 February 19921 by "EDP Renewables Polska" spółka z ograniczoną odpowiedzialnością (hereinafter: the "Company") for the tax year 2022.
The methodology for preparing the structure of this document is based on the presentation of information in accordance with the requirements provided for by Article 27c of the CIT Act and, in addition, information deemed relevant by the Company.
This document provides information on:
- company (i.e. registration data, object of activity, information on the amount of share capital);
- objectives of the tax strategy of the group to which the Company belongs;
- the Company's processes and procedures for managing compliance with tax law obligations;
- voluntary forms of cooperation applied by the Company with the authorities of the National Tax Administration (hereinafter: "KAS authorities");
- the Company's fulfilment of its tax obligations in the territory of the Republic of Poland, together with information on the number of information on tax schemes provided to the Head of the National Fiscal Administration (hereinafter: "Head of KAS"), broken down by the taxes to which they relate;
- transactions with related parties within the meaning of Article 11a par. 1 pt. 4 of the CIT Act, whose value exceeds 5% of the balance sheet total of assets within the meaning of the accounting regulations, determined on the basis of the Company's last approved financial statements, including those which are not Polish tax residents;
- planned or undertaken restructuring activities that may affect the tax liabilities of the taxpayer or related entities within the meaning of Article 11a, section 1, item 4 of the CIT Act;
- submitted applications for the general tax interpretation referred to in art. 14a par. 1 of the Tax Ordinance2;
- submitted requests for the issuance of interpretations of the provisions of tax law referred to in Article 14b of the Tax Ordinance;
- submitted applications for binding rate information referred to in Article 42a of the Value Added Tax Act3;
- submitted requests for binding excise information referred to in Article 7d(1) of the Excise Duty Act4;
- making tax settlements in territories or countries with harmful tax competition.
II. General information
1. Information about the Company
"EDP Renewables Polska" spółka z ograniczoną odpowiedzialnością is registered in the National Court Register kept by the District Court for the Capital City of Warsaw in Warsaw, XII Economic Division of the National Court Register under KRS number: 0000297181 and operates at Al. Jerozolimskie 98, 00-807 Warsaw, NIP: 1070009277, REGON: 141242863.
The company is a renewable energy generation company, and through its special purpose vehicles is engaged in the generation of electricity from wind, solar in the domestic market, and also has dedicated companies for the business of electricity distribution and trading (regulated market). Its main generation activities are based on a comprehensive investment process, from securing land (development) to building and then maintaining infrastructure.
The company actively sells electricity produced from renewable energy sources, as well as property rights and guarantees of origin, both directly to electricity market counterparties and by selling its products on the Towarowa Giełda Energii (Polish Power Exchange) (acting through a broker).
The company holds a leading position in Poland in terms of MWh of electricity generated from renewable energy sources.
2. Objectives of the Group's tax strategy
The objectives of the Company's tax strategy are linked to the tax strategy objectives of the EDP Group entities.
As part of its taxation mission, the Group sees it as an ethical and civic duty to finance the operation of the countries where Group entities are present by paying the taxes due in accordance with the laws in force in those countries, with the aim of achieving the well-being of the citizens of those countries, the responsible development of the Group's local businesses and the creation of shareholder value.
The Group has an internal, globally applicable tax policy that sets out the general principles applicable to all activities that Group entities undertake.
The main principles of the Group's tax strategy are as follows:
- comply with the tax obligations stipulated by the relevant legislation arising from the business and social activities carried out by the Group in each country, through the payment of taxes and the fulfilment of reporting obligations;
- ensure a correct and prudent interpretation of the applicable law in relation to the transactions carried out, with the support of competent specialists and using the opinion of the local tax authorities where possible and necessary to guarantee full compliance with applicable law;
- build a proactive, healthy and close cooperation with the tax authorities in the countries where the Group's entities are present, in order to obtain the proper flow of information, documentation, and explanations necessary to ensure a proper understanding of the transactions carried out by the Group in these countries;
- carry out the tax function within the EDP Group with the utmost accuracy and professionalism in accordance with the Group's tax mission, while bearing in mind that:
-- the solutions implemented will be the most appropriate for the business and the shareholders, while preserving the spirit and the letter of the law;
-- Group entities will defend their legitimate interest at administrative and, if necessary, judicial level if it can be reasonably interpreted that the payment of taxes or contributions raises legal issues;
-- Group entities will benefit from tax concessions and incentives applicable in their region and deemed appropriate to their operations; - ensure that persons and entities that carry out any transactions with EDP are in a position to comply with any tax obligations directly arising from such transactions, in particular by providing the necessary tax information or declarations that the EDP Group is legally obliged to provide or that it considers relevant.
III. General information Informacion about the taxpayer's processes and procedures for managing its obligations under tax law and the voluntary forms of cooperation applied by the taxpayer with the national tax administration authorities
1. Information on the taxpayer's processes and procedures for managing and ensuring the proper performance of its tax law obligations
The Company's policies on tax matters are based on tax legislation and accepted good practices in this area, and are consistent and harmonised with the values of the Company and its employees in pursuing its business strategy and objectives.
In its day-to-day operations, the Company focuses on reliably meeting its tax obligations and complying with applicable laws. The Company has pursued a tax strategy that meets the tax obligations imposed on it, as well as ensuring that potential tax risks are hedged.
By complying with the tax and legal regulations, as well as with the guidelines of the tax authorities, the Company strives to pay its tax liabilities in the amount resulting from the applicable tax laws, in order to ensure compliance with the requirements and payment deadlines of the relevant taxes. The Company makes every effort to comply with the applicable tax laws, interpreting them conservatively and applying them in accordance with the principle of due diligence and managing tax risks responsibly.
The Company's objective is to fairly calculate the taxes due and aggressive tax planning is not in the Company's area of interest. The Company does not implement or carry out operations that may result in artificial constructions and illegal tax and legal solutions.
The Company's tax processes are handled by qualified employees who have the appropriate level of tax knowledge and experience to enable them to discharge their duties reliably and in a timely manner. The Company promotes the dissemination of the organisation's culture and its values through, among other things, the proper application of tax regulations, also through the participation of employees in training in this area.
The various tax processes, including the roles and responsibilities of the Company's business units, are performed within the framework of accepted and developed practices and processes.
In performing the processes involving the reliable discharge of the Company's tax obligations, the Company used IT tools adapted to the Company's needs and the scale of its operations. These solutions made it possible to ensure the correct and complete documentation of tax data and allowed the correct preparation of tax returns, financial statements and other statutory obligations imposed on the Company. The Company managed tax documents and information in a reliable and correct manner, taking care to use mechanisms aimed at protecting this data and archiving it appropriately.
2. Voluntary forms of cooperation with KAS authorities
The Company maintains a transparent and open relationship with the tax authorities and cooperates with them on an ongoing basis. The Company strives to work proactively, openly and transparently with the tax authorities so that all contentious issues are resolved in a timely and reliable manner.
In 2022, the Company did not use any voluntary forms of cooperation with the National Tax Administration authorities.
IV. Information on the taxpayer's fulfilment of his tax obligations in the territory of the republic of Poland together with information on the number of tax schemes submitted to the head of the cash register
1. Information on tax obligations fulfilled by the Company in the territory of the Republic of Poland
In its operations, the Company focused on accurate reporting and compliance, including the timely filing of all tax returns, forms and information, completing documentation and meeting tax payment deadlines. The Company has made every effort to ensure that the information provided faithfully represents the facts and is complete, up-to-date and understandable.
In 2022. The Company fulfilled its tax obligations in all areas required by tax law, taking into account the scope of the Company's activities.
The Company fulfilled its obligations with regard to value added tax (VAT), corporate income tax (CIT), personal income tax (PIT), withholding tax (WHT), excise duty, civil law transaction tax (PCC) and also paid social security and health insurance contributions on salaries paid to the Company's employees (ZUS). Including the Company has complied with all information and reporting obligations imposed by law, including the filing of ORD-U, TPR, among others.
2. Information on the number of information on tax schemes provided to the Head of KAS, broken down by the tax to which they relate
In 2022. The Company, as a beneficiary, provided 3 information on corporate income tax schemes to the Head of KAS.
V. Information on transactions with related parties or restructuring operations undertaken by the taxpayer
1. Information on transactions with related parties within the meaning of Article 11a(1)(4) of the CIT Act, the value of which exceeds 5% of the balance sheet total of assets within the meaning of the accounting regulations, determined on the basis of the Company's last approved financial statements, including those which are not Polish tax residents
According to the Company's financial statements for 2022, the Company's total assets amounted to PLN 2,355,827,000.00, which means that 5% of the total assets is PLN 117,791,350.00.
In 2022. The Company completed transactions with EDP Renováveis Servicios Financieros, S.A. for electricity price hedging in excess of the threshold indicated above.
2. Information on restructuring activities planned or undertaken by the taxpayer which may affect the amount of tax liabilities of the taxpayer or related entities within the meaning of Article 11a, section 1, item 4 of the CIT Act
In 2022, it sold shares in 6 companies and acquired shares in 7 companies.
VI. Information on apllications submitted
1. Applications for a general interpretation of tax law provisions referred to in Article 14a § 1 of the Tax Ordinance
The Company did not apply for a general tax interpretation in 2022.
2. Applications for tax law interpretations referred to in Article 14b of the Tax Ordinance
In 2022. The Company filed 2 applications for tax law interpretations referred to in Article 14b of the Tax Ordinance.
For the above-mentioned applications submitted in 2022:
- the first concerned corporate income tax, in relation to which the Company received an individual interpretation of tax law, whereby one position of the Company was considered correct and the other incorrect,
- the second concerned corporate income tax, in relation to which the Company received an individual interpretation of tax law, whereby all three of the Company's positions were found to be incorrect.
3. Requests for binding rate information referred to in Article 42a of the VAT Act
The Company has not applied for binding rate information in 2022.
4. Requests for binding excise information referred to in Article 7d(1) of the Excise Act
The Company has not applied for binding excise information in 2022
VII. INFORMATION RELATING TO THE TAXPAYER'S TAX AFFAIRS IN TERRITORIES OR COUNTRIES APPLYING HARMFUL TAX COMPETITION
In 2022, to the best of the Company's knowledge, no tax settlements have been identified in territories or countries with harmful tax competition.