Page 50 - Central and Eastern European Transfer Pricing Review

50 | CEE Transfer Pricing Review

with no factual beneft to the recipient documentation have been observed. Does the tax authority publish APA
(stewardship expense); and the expense So far the law has not been changed, data either in the form of an annual
is not listed in Article 16 of the CIT Act, but such amendment may be report or through the disclosure of
which describes non-tax-deductible expected in the future. data in public forums?
expenses. Statistics on the number of motions
Tax treaty/double tax
Are management fees subject to submitted and decisions issued (positive
withholding? resolution and negative) are presented on request
Yes. Withholding tax regulations apply, What is the extent of the double only. There is no formal annual report or
unless the double taxation treaty is in tax treaty network? similar publication.
force. Therefore, in practice, there is no Extensive. Please provide some information
withholding tax on management fees for on how successful the APA program
countries with treaty protection. If extensive, is the competent is and whether there are any known
authority effective in obtaining diffculties?
Are year-end transfer pricing double tax relief?
adjustments permitted? The Ministry of Finance is open
Sometimes/only limited experience. to discussions about all types of
Yes. Preferably, the adjustment should
be refected in the correction of the When may a taxpayer submit an transactions and already has some
original transaction price, the fnancial adjustment to competent authority? experience with the APA program.
statement and tax return. An adjustment After acknowledgement of a double However taxpayers are still reluctant
triggers VAT and customs implications. taxation. to use the APA route. We have noticed
No special tax declaration needs to be a clear change of attitude, becoming
submitted. May a taxpayer go to competent signifcantly more business-friendly.
authority before paying tax?
Other unique attributes? Language
Yes.
Polish regulations envisage personal In which language or languages
responsibility for decreasing a companys can documentation be fled?
tax liability (fnancial penalty, records Advance pricing
in the criminal register, imprisonment). arrangements Polish only.
Polish tax authorities do exercise this rule
and penalize company management. What APA options are available,
if any?
Other recent Unilateral; bilateral; multilateral.
developments Is there a fling fee for APAs?
Taxpayers are requested to disclose Yes. The fling fee is 1 percent of the
information on transactions not value of a transaction with the following
compliant with the arms length standard provisions: for unilateral agreements
in the fnancial statements additional with domestic entities, no less than
information. If there is no declaration, the 5,000 Polish zloty (PLN) and no more
auditors and tax authorities can request than PLN50,000; for foreign entities no
evidence to verify the arms length nature less than PLN20,000 and no more than
of the related party transactions. Despite PLN100,000; for bilateral or multilateral,
the lack of formal obligations, preparing no less than PLN50,000 and no more
comparable analyses and benchmarking than PLN200,000. Renewal fees are half
studies on related party transactions is of the amount of the original fling fee.
highly recommended. KPMG in Poland
Attempts to amend the current Jacek Bajger
regulations and to include comparable Tel: +48 22 528 1173
analysis into the scope of required Email: jbajger@kpmg.pl
elements of the transfer pricing

As email addresses and phone numbers change
frequently, please email us at transferpricing@
kpmg.com if you are unable to contact us via the
information noted above.
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