Poland: Transfer Pricing Forum's Draft Recommendations In Relation To COVID-19

This is to let you know that public consultations have commenced on draft Transfer Pricing Forum Recommendations on the transfer pricing implications of the COVID-19 pandemic for Polish taxpayers ("Recommendations").

The Recommendations are aligned with OECD Guidance on the transfer pricing implications of the COVID-19 pandemic (see our Newsletter no. 5/2021).

The Recommendations deal with a variety of matters, including:

• decision-making flowcharts that help identify:
• whether it is necessary to update the comparability analysis for the impact of the pandemic,
• the transfer pricing approach to crisis-related government assistance,
• the approach to advance pricing agreements that already exist or are being negotiated;
• extended answers to questions from the decision-making flowcharts, intended as guidance to navigate the flowcharts;
• practical examples, including ones helping to determine:
• if a producer/distributor/service provider should update its comparability analysis in connection with the COVID-19 pandemic,
• if a contract manufacturer should include crisis-related government assistance in calculating its manufacturing fee,
• how to document the impact of the COVID-19 pandemic on the taxpayer's business.

WTS&SAJA became involved in the consultation process as it urged for:

• tax authorities to withhold their transfer pricing audits for the pandemic years until comparables become available (meaning until 2022 for transfer prices applied in 2020),
• adding selected practical examples of how to apply the Recommendations,
• clarifying some vague language and increasing terminological uniformity of the text.

The Recommendations are available (in Polish) here: https://www.podatki.gov.pl/ceny-transferowe/wyjasnienia/rekomendacje-forum-dot-covid-19-zaproszenie-do-zglaszania-uwag/

We will keep you up-to-date with the progress of the work on the final version of the Recommendations.

Should you have any questions about the above content, do not hesitate to contact your WTS&SAJA consultant.