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Revolution in Polish transfer pricing regulations (planned from 2017)

16 July 2015

As informed earlier, on April 2015 the Polish Ministry of Finance published draft amendments regarding transfer pricing regulations. The amendments result from the OECD’s and G20’s recommendations within the framework of the project addressing Base Erosion and Profit Shifting (BEPS). The draft amendments also take into account the comments of the Supreme Chamber of Control.

The draft has been subject to public consultation and assessment by non-governmental organisations, resulting in the publication of the third version of the draft (July 2015). Currently the draft is in the parliament.

After the public consultation, the draft has been amended as follows:

  • the capital relation threshold has been increased from 20% to 25%;
  • documenting only the "significant" transactions amounting to EUR 50,000 or more (depending on the amount of taxpayer’s revenue) will be mandatory;
  • the regulations on preparing comparable data analyses have been clarified.

Additionally, most of the regulations are to take effect as of 1 January 2017 (not 1 January 2016 as previously suggested), whereas the first country-by-country report is to be prepared for 2016. As a result, taxpayers will have more time to prepare for the proposed changes.

Also, the following draft supplementary regulations have been published:

  • regulation defining a template report to be prepared by taxpayers and submitted with their annual income statement, which will present a high-level overview of intercompany transactions and other intercompany business interactions;
  • regulation defining details on how to describe specific elements of a transfer pricing documentation;
  • regulation defining a template country-by-country report.

We will keep you updated on the status of the above changes.

Please find below the link to our leaflet presenting the new obligations and thresholds: