Poland: Transfer Pricing Statistics For 2019

Finance Ministry's representatives have published an article with first statistics based on transfer pricing reporting (form TPR) for 2019.

• The total number of TPR reports filed for 2019 is 16,188 on form TPR-C (corporates) and 1,675 on form TPR-P (individuals).
• In case of app. 4.5% of the reports the taxpayers filled corrections.
• Out of the total reported transactions:
  • 43% were financial transactions,
  • 26% were service transactions,
  • 11% were manufacturing transactions,
  • 6% were distribution transactions,
  • 6% were asset transactions,
  • 6% were transactions relating to restructuring, reinvoicing etc.,
  • 2% were transactions involving transfer or use of intellectual property.
• A total of 708 safe harbour transactions were reported, of which 550 involved low-value-adding services and 158 were financial transactions.
• The top foreign countries in terms of total reported transaction value were Switzerland (PLN 5.51bn), Germany (PLN 2.95bn), and Netherlands (PLN 2.54bn).
• Transactions with tax havens had the total value of PLN 140m, of which 86.27% were transactions with entities based in the Republic of Panama or Hong Kong (this comes as no surprise since sea transport services are typically bought from Panama-based entities while Hong Kong is a commerce hub for trade with China).

The article concludes with recommendations as to future changes in law. The authors recommend considering medium-term efforts to ensure the digital transformation of TP filings and the integration of local file documentation with TRP report. A taxpayer would then submit a single electronic document combining elements of local file and TRP report.

We would remind you that there are proposed tax changes, currently in the public consultation process, intended to integrate the TRP report and the Local File documentation representation. This will probably result in the requirement to have TRP reports signed by taxpayer's management board members according to representation.

If this issue pertains to your business and you are interested in our assistance, please contact your WTS&SAJA consultant.