These changes pertain to a number of acts, i.e. the PIT Act, the CIT Act, the Tax Ordinance, the Fiscal Penal Code. The table below presents a summary of the most important changes in transfer pricing under the "Polish Deal".
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Key changes in transfer pricing area under the "Polish Deal" tax project |
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Transaction value |
If VAT is not neutral to the taxpayer, the amount of VAT resulting from the audited transaction will be included in the value of the transaction connected with the documentation threshold. |
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Deadline for preparation of local documentation |
Change from the current deadline of 9 months to 10 months after the end of the fiscal year.. |
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TPR submission deadline |
Change from the current deadline of 9 months to 11 months after the end of the fiscal year. |
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Deadline for preparation of group documentation |
According to the assumptions, the deadline is 12 months after the end of the fiscal year |
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Deadline for submission of the transfer pricing documentation to tax authorities in case of audit |
Change from the current deadline from 7 days to 14 days. |
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Statement |
No obligation to make a separate statement on preparation of the transfer pricing documentation and conclusion of arm's length terms of related party transactions. The content of the statement is to be included within the TPR form. |
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TPR submission |
Filed with the tax offices competent for filing the taxpayer's annual income tax return. Presently it is submitted to the Head of the National Tax Administration. |
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TPR and non-corporate entities |
According to the project non-corporate entities will be obligated to file a TPR form to the head of the tax office connected with jurisdiction over the entity's registered office or place of business. Now, TPR form is filed by the designated general partner to the head of the National Tax Administration. |
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Benchmarking analysis |
A number of exemptions from the obligation to prepare analyses are proposed, i.e. for transactions concluded by related entities which are micro or small enterprises: in the safe harbour mechanism, which constitute low-value services, and certain transactions with entities from tax havens. |
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Transfer pricing adjustments |
There are proposals for simplifications for in-minus adjustments and the presentation of adjustment information in the annual tax return. |
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Exemptions from the obligation to prepare the transfer pricing documentation |
There are proposals for exemptions from the obligation to prepare the transfer pricing documentation, i.e. in case of transactions: covered by the safe harbour mechanism, specified with a foreign permanent establishment, covered by a tax or investment agreement, re-invoicing meeting certain conditions. |
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Penalties in the Fiscal Penal Code for failure to prepare the transfer pricing documentation or the TPR form |
According to the proposed legislation increase up to 720 daily rates. |
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Penalties in the Fiscal Penal Code for late preparation of the transfer pricing documentation or TPR form |
According to the proposed legislation increase up to 240 daily rates. |
In the following entries we will explain in more detail the individual changes in transfer pricing
