Poland transfer pricing regulations: Draft amendment for regulatory compliance published
The Polish Ministry of Finance has published a draft of amendments to transfer pricing regulations in Poland which, among other things, are designed to modify transfer pricing reporting. The most significant change concerns the procedure for submitting a declaration of marketability of transactions. The Ecovis consultants explain why this could significantly change the creation of transfer pricing documentation.
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Scope of the changes
There are four main elements in the changes proposed by the Ministry of Finance:
- Simplification of the rules for signing transfer pricing information
- Modification of mandatory elements of local transfer pricing documentation
- The introduction of criminal fiscal liability for preparing the local transfer pricing documentation in breach of the regulations
- Reducing formal requirements for the submission of transfer pricing information by micro and small enterprises
We will help you determine whether the announced changes affect your company.
Hubert Kaczyński, Tax Advisor, ECOVIS Poland, Warsaw, Poland
Practical issues
In practice, the changes outlined above mean:
- A simplification of the process of signing and submitting the information on transfer prices (TPR form), by removing from this form the declaration of the marketability of the prices applied in the reported transaction. When the changes are implemented, the form may be signed by persons authorised to sign declarations submitted via electronic means of communication.
- The addition to the local transfer pricing documentation of a statement from the entity confirming that the local transfer pricing documentation has been prepared in accordance with the actual situation and that the transfer prices covered by this documentation are determined on an arm’s length basis. Following the change, the local transfer pricing documentation will have to be signed by a member of the management board.
- Increased personal liability of persons responsible for the preparation of the transfer pricing documentation. Criminal fiscal liability will be introduced for failing to include a statement confirming that the prices applied in a reported transaction are determined on an arm’s length basis.
- The introduction of an exemption for micro and small enterprises from the obligation to include the values of general indicators measuring the financial situation of these entities in the TPR form.
Under the current proposals, the new requirements will apply to the local transfer pricing documentation and the TPR form submitted for the tax year beginning after 31 December 2025 (i.e., those submitted in 2027).
