Tp Requirements Poland

The Polish government published on 28 June 2022 a legislative proposal that, among other things, would clarify the obligation for companies to submit transfer pricing reports and amend the documentation requirements for transactions with companies located in “tax havens”. At the beginning of 2019, the Corporate Tax Act was supplemented by provisions on transfer pricing adjustments. These provisions allow these adjustments to be recorded in the year to which they relate, even if they are “negative” adjustments, but only if all the requirements of the Corporate Income Tax Act are met. The legislative proposal also includes a measure to clarify that the substantive provision would relate to the beneficial owner of the claim in relation to the transaction in a tax haven. In addition, there would be a deviation from the norm regarding presumption of residence of the beneficial owner in a tax haven, with an exclusion of documentation requirements in certain situations. For a complete list of contacts and email addresses, please click on Tax News: Global Edition (UNWG) of this alert. The annual fee is half of the fee for the renewed PPA. The tax rules provide for fines for non-compliance with these obligations (maximum amount: 1 million). PLN) Since January 2021, there has been an extension of the obligation to document transactions with companies from tax havens in a situation where the beneficial owner (beneficial owner) has a residence, registered office or board of directors in these countries – with the presumption that in the case of settlements (whether by a taxpayer or by non-companies) with tax haven companies, The beneficial owner has a residence, registered office or director of directors in such a country. We have years of experience in helping businesses grow in Poland. If you are an established company, we offer a free consultation that includes: Since 1 January 2019, the so-called Safe Harbor institutions have been introduced into Polish transfer pricing regulations. Safe harbor means that some of the transactions executed by the taxpayer are not subject to valuation as long as they are carried out under the conditions specified by the legislator.

Update to EY`s U.S. Tax Update Framework Agreement | EY Privacy Policy The proposal would double the materiality threshold for direct tax havens, while for indirect transactions the threshold would depend on the type of transaction (in terms of actions set out in the substantive provision). Therefore, the basic materiality threshold should remain at the level of PLN 500 000. However, for financial and commodity transactions, the threshold would be five times higher, at PLN 2.5 million. The most important Polish tax regulations in the field of transfer pricing can be found in the Income Tax Act (PIT Act) and the Corporate Tax Act (IRS Act). Starting at 1. January 2019, they are defined in Chapter 4b of the PIT Act and Chapter 1a of the IRS Act. Transfer pricing tax regimes also include a number of implementing acts (regulations and notices). Provisions in this regard are also contained in the Tax Ordinance and the Law on the Exchange of Tax Information with Other States.

In general, Polish transfer pricing tax legislation is in line with the OECD Guidelines. Read a July 2022 report prepared by KPMG`s member firm in Poland Below we present the most important information in the field of transfer pricing in Poland. The year 2020 was the first time that taxpayers were confronted with the TPR declaration, which is the successor to the CIT-TP, but with much more detailed information. We highly recommend that you read our publication, in which we also discuss the subject of the TPR in detail. APAs are available in Poland, including foreign companies operating through a permanent establishment. The Head of the Polish National Tax Administration may, upon request, decide whether he considers a particular method of transfer pricing between related parties to be acceptable. All rights reserved. No part of this document may be reproduced, retransmitted or otherwise distributed in any form or by any means, electronically or mechanically, including photocopying, facsimile, recording, re-entry or use of any information storage and retrieval system, without the written permission of Ernst & Young LLP. TP rules apply to PL taxpayers, including PL branches of foreign companies The legal deadline for the preparation of transfer pricing documentation obligations is as follows: The new rules should apply retroactively to tax years from 1 January 2021. The proposed legislation aims to bring about systemic changes by clarifying the obligation for companies to submit transfer pricing reports, with measures to ensure that the head of the taxpayer`s tax office receives information on taxpayers` contracts with non-residents, and in particular on controlled transactions. Note that, regardless of this, in the event that the transfer pricing documentation: (i) is not filed within the legal deadline, (ii) is incomplete or (iii) contains incorrect information, individual sanctions may be imposed on individuals on the basis of the Penal Tax Code (CPF). An order issued to a taxpayer by the tax administration (file 0111-KDIB1-1.4010.208.2022.1.MF (5 July 2022)) stipulates that a Polish company contributing additional capital of a foreign company is not required to establish a local file or comply with other transfer pricing documents or reporting obligations.

The year 2020 did not bring any revolutionary changes to Polish transfer pricing rules and outlook. Of course, 2020 was a year of the COVID pandemic and, therefore, it was time to try to make things easier for taxpayers and push back deadlines. Download the latest “Transfer Pricing Summary 2021 for Poland (PDF)” for more information, or read more below: Currently, the APA is awaiting the decision of the Head of the National Tax Administration (KAS), which confirms the selection and application of a methodology for determining related party transaction prices. Undertakings considered to be related are required to prepare transfer pricing documentation if the volume of the individual transaction exceeds the value of: In the opinion of the tax authorities, a reclassification and exclusion of the transaction may be carried out if, in similar circumstances, independent parties guided by economic reasons would not have completed the controlled transaction in question. As an OECD and EU Member State, Poland complies with the OECD Transfer Pricing Guidelines, in particular the OECD Base Erosion and Profit Shifting Report, in particular Action 13: “Review of Transfer Pricing Documentation” and the EU Code of Conduct on Transfer Pricing Documentation for Associated Enterprises.