Page 47 - Central and Eastern European Transfer Pricing Review

Poland | 47

Poland

KPMG's Views on Transfer Pricing in Poland

In recent years transfer pricing has been mentioned as one of the top priorities in
the circular issued each year by the Polish Ministry of Finance to the tax inspectors
describing the main areas which should be subject to thorough scrutiny during tax
audits. Polish tax authorities prefer to rely on Polish comparables when analyzing
benchmarking studies. Due to the economic downturn, transfer pricing restructurings
are being implemented in the multinational companies operating in Poland. As some of
them may be perceived as abusive by the tax authorities, transfer pricing audits aimed at
challenging the new transfer pricing structures are expected. The Polish Ministry of Finance
is encouraging taxpayers to conclude APAs for their important transactions and we have
noticed a change in their approach in recent years towards taxpayers who want to conclude
APAs, becoming more business-friendly.

Basic information Effective date of transfer pricing agreements concluded with related
rules parties when the value exceeds
Tax authority name
Arms length principle, 15 February 1992, 300,000 Euros (EUR) (total value
Ministerstwo Finansów. application of methods, 1 October 1997, of receivables or liabilities resulting
information requirement, 31 December from all agreements concluded with
Citation for transfer pricing rules one related party within a fscal year)
1997, documentation requirement,
Reassessment of income: Article 11 27 July 2000, APA, 1 January 2006. or EUR5,000 if an agreement is
Corporate Income Tax (CIT) Act. concluded with a related party which
What is the relationship threshold has a permanent establishment in
Decree of the Ministry of Finance for transfer pricing rules to apply Poland; information on remuneration
of 10 September 2009 establishing between parties? paid by foreign related parties to foreign
the taxpayers income through the individuals providing services (working)
assessment of prices, and on the method Ownership greater than 5 percent, for the Polish subsidiary.
and procedure for the elimination of share capital, are under common control.
double taxation of the legal person in the What are the consequences
case of proft adjustments for related What is the statute of limitations of failure to prepare or submit
parties, in force as of 17 October 2009. on assessment of transfer pricing disclosures?
adjustments?
Information requirements: Article 82 Six years from tax year-end. Persons responsible for the companys
and 82a of the Tax Ordinance Act and tax compliance may be held responsible
the Decree of the Ministry of Finance of under the penal-fscal code for not
24 December 2002 on tax information. Transfer pricing submitting required tax information.
disclosure overview
Documentation requirements:
Article 9a CIT. Are disclosures related to transfer Transfer pricing study
pricing required to be prepared or overview
Documentation requirements submitted to the revenue authority
(sanctions): Article 19, sec. 4, CIT Act. on an annual basis (e.g. with the Is preparation of a transfer pricing
Harmful tax competition: Decree of the tax return)? study required i.e. can the
taxpayer be penalized for mere
Ministry of Finance of 16 May 2005. Yes. failure to prepare a study?
APA: Article 20a20q, Tax Ordinance Act. What types of transfer pricing Yes, a transfer pricing study (understood
information must be disclosed? as documentation to related party
transactions) is required for transactions
Information if an entity is obliged to
prepare statutory transfer pricing exceeding thresholds. There is no
documentation; information on penalty for a mere failure to possess
© 2013 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated
with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.