- Local transfer pricing documentation is prepared for a controlled transaction of a uniform nature, the value of which, less value added tax, exceeds the following documentary thresholds in the financial year:
- PLN 10 million – in the case of a commodity transaction;
- PLN 10 million – in the case of a financial transaction;
- PLN 2 million – in the case of a service transaction;
- PLN 2 million – in the case of a transaction other than those defined in points (i-iii).
- Documentation thresholds are established separately for:
- each controlled transaction of a uniform nature regardless of the categorisation of a controlled transaction as a commodity, financial, service, or other transaction;
- the cost and revenue side.
- The following taxpayers are also required to prepare local transfer pricing documentation:
- those transacting, directly or indirectly, the payment of receivables to an entity resident or with its registered office or management in the territory of or in a country applying harmful competitive tax practices, if the total amount resulting from the contract or actually paid in the accounting year, the total amount of contributions due in this year exceeds PLN 100,000.00 or an equivalent amount, or
- concluding the following with an entity resident or with its registered office or management in the territory or in a country applying harmful competitive tax practices:
- articles of association for an entity that is not a legal person, if the total value of contributions paid by the shareholders exceeds PLN 100,000.00 or an equivalent of this amount, or
- a joint-venture agreement or other contract of a similar nature in which the value of the jointly implemented venture specified in the contract, or expected as at the contract date, if not specified in the contract, exceeds PLN 100,000.00 or its equivalent.
- The amounts referred to in section 1, expressed in a foreign currency, shall be converted into PLN at the average exchange rate announced by the National Bank of Poland, in force on the last business day preceding the date of the economic operation.
If you have any questions or queries please do not hesitate to contact getsix®.
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