The taxpayer is required to prepare local transfer pricing documentation for a controlled transaction of a homogeneous nature whose value, less value added tax, exceeds the following documentation thresholds in the financial year:
- 10,000,000.00 PLN – in the case of a commodity transaction,
- 10,000,000.00 PLN – in the case of a financial transaction,
- 2,000,000.00 PLN – in the case of a service transaction,
- 100,000.00 PLN – in case of a controlled transaction with an entity having its registered office, management or residence in the so-called tax haven – irrespective of the type of transaction,
- 500,000.00 PLN – as of 2021 preparing local documentation will also be obligatory in case of performing a controlled transaction or a transaction other than controlled, if the actual owner of receivables from such transactions has its registered office, management or residence in the so-called tax haven. It shall be presumed that the owner has the residence, registered office or management in the so-called tax haven, on the basis of the fact that one of the parties to the transaction makes settlements with such an entity,
- 2,000,000.00 PLN – in the case of a transaction other than the one specified in the point above.
Documentation thresholds will be established separately for:
- any controlled transaction of a homogeneous nature irrespective of the allocation of the controlled transaction to commodity, financial, service or other transactions,
- cost and revenue side.
Transfer pricing is verified using the most appropriate method in the circumstances, selected from the following methods:
- a comparable uncontrolled price,
- a resale price,
- plus cost,
- net transaction margin,
- division of profits.
In determining the amount of income (loss), the tax authority shall apply the method adopted by an affiliate, unless the application of a method other than that adopted by the affiliate is more appropriate under the circumstances.
The taxpayer is obliged to submit a TP-R declaration by the end of the ninth month after the end of the tax year.
In the catalogue of exemptions from the obligation to prepare local documentation, the most important is the exemption from the obligation to prepare local documentation for transactions concluded exclusively by affiliates having their residence, registered office or management in the Republic of Poland in the tax year in which each of these affiliates meets certain conditions, in particular none of them suffered a tax loss.
If the consolidated income of the capital group in the previous tax year exceeded the limit of 200,000,000.00 PLN, the capital group is obliged to submit Master File documentation.
If you have any additional questions about tax or require further information, please contact your relevant contact person who will forward your enquiry to the department:
Partner / Attorney at law (PL)
Specialisation: Tax law
Head of getsix Tax & Legal
getsix Tax & Legal
Our specialist tax advisors, headed by Mrs. Aneta, are at your disposal. You will find the contact form on the getsix website.