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Revolution in Polish transfer pricing regulations (planned from 2016)

30 April 2015

We would like to inform you about the draft amendments from 27 April 2015 regarding regulations on Polish transfer pricing documentation. These changes, which are planned to enter into force in 2016, include, among others:

–      extending documentation requirement for other events - in addition to the transactions transfer pricing documentation requirement will also cover other events recognized in the accounting books, conditions of which were settled (or imposed) by related entities (e.g. cash pooling arrangements, cost sharing agreements, agreements of companies not being a legal entity, joint venture agreements);

–      extending documentation requirement for partnerships (the partners may agree to appoint one of them responsible for the transfer pricing documentation, but the others will not be released from liability for not preparing the transfer pricing documentation);

–      changes to the scope of the transfer pricing documentation – transfer pricing documentation should include description of: the taxpayer, the transactions and other events, as well as financial information;

–      implementing requirement of conducting independent comparables’ data analysis (bechmarking study) for the taxpayers whose sales revenues or costs exceed EUR 10m. Importantly, such an analysis should take into account Polish comparables;

–       implementing requirement of preparing transfer pricing documentation at the group level (master file) for the taxpayers being a part of a capital group and whose sales revenues or costs exceed EUR 20m;

–      introducing requirement of country-by-country reporting – for the taxpayers whose sales revenues exceed EUR 750m;

–      introducing a provision regulating deadline for preparation of the transfer pricing documentation – transfer pricing documentation should be prepared not later than the date of filing  the tax return for the given tax year. What is important, member of the board will be obliged to sign a statement confirming preparation of the comprehensive transfer pricing documentation (such a statement will be attached to the tax return);

–      requirement to attach to the tax return for a given tax year a simplified report on the transactions / other events with related entities or tax havens – for the taxpayers whose sales revenues or costs exceed EUR 10m;

–      taxpayers with sales revenues and costs below EUR 2m will not be obliged to prepare transfer pricing documentation);

–      change of the definition of capital relations – share capital threshold will be changed from 5% to 20%.


Changes in the form presented above seem to be revolutionary and undoubtedly will increase administrative burden associated with the preparation of transfer pricing documentation for many taxpayers.

We will update you on the status of the changes described above.