Menu
  • Locations
  • About Us
  • Services
  • Experts
  • News
  • Knowledge
  • Culture & Career
  • Locations
  • Search
  • Press
  • Events & Webinars
  • Contact
  • CI Guide
  • Albania
  • Angola
  • Argentina
  • Armenia
  • Australia
  • Austria
  • Bangladesh
  • Belarus
  • Belgium
  • Benin
  • Bolivia
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Burkina Faso
  • Burundi
  • Cambodia
  • Cameroon
  • Canada
  • Chile
  • China
  • Colombia
  • Costa Rica
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Dominican Republic
  • Ecuador
  • Egypt
  • El Salvador
  • Estonia
  • Finland
  • France
  • Georgia
  • Germany
  • Ghana
  • Gibraltar
  • Greece
  • Guatemala
  • Guinea
  • Honduras
  • Hong Kong
  • Hungary
  • Iceland
  • India
  • Indonesia
  • Iran
  • Iraq
  • Ireland
  • Israel
  • Italy
  • Ivory Coast
  • Japan
  • Kazakhstan
  • Kenya
  • Korea
  • Kyrgyzstan
  • Laos
  • Latvia
  • Lithuania
  • Luxembourg
  • Macao
  • Macedonia
  • Madagascar
  • Malaysia
  • Mali
  • Malta
  • Mauritius
  • Mexico
  • Moldova
  • Mongolia
  • Montenegro
  • Morocco
  • Mozambique
  • Myanmar
  • Nepal
  • Netherlands
  • New Zealand
  • Niger
  • Nigeria
  • Norway
  • Pakistan
  • Panama
  • Paraguay
  • Peru
  • Philippines
  • Poland
  • Portugal
  • Puerto Rico
  • Romania
  • Russia
  • Rwanda
  • Saudi Arabia
  • Senegal
  • Serbia
  • Seychelles
  • Singapore
  • Slovakia
  • Slovenia
  • South Africa
  • Spain
  • Sri Lanka
  • Sweden
  • Switzerland
  • Taiwan
  • Tanzania
  • Thailand
  • Togo
  • Trinidad and Tobago
  • Tunisia
  • Turkey
  • Turkmenistan
  • Uganda
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Uruguay
  • USA
  • Uzbekistan
  • Venezuela
  • Vietnam
  • Zambia
  • About Us
  • Our CEO
  • Our Board
  • Our Global Executive Team
  • Quality, Process & Risk Management
  • Corporate Tax
  • Customs
  • Financial Services
  • Global Mobility
  • Indirect Tax
  • International Corporate Tax
  • Mergers & Acquisitions (M&A)
  • Private Clients & Family Office Services
  • Real Estate Services
  • Tax Controversy
  • Tax Technology
  • Transfer Pricing & Valuation Services
  • Latest News
  • Pillar Two - Global Minimum Tax
  • Brochures
  • Newsletters
  • Surveys & Studies
  • The Digital Tax Law Center (DTLC)
  • The European Tax Law Center (ETLC)
  • Climate Protection, Green Tax & Energy
  • Tax Loss Carryback
  • Real Estate Guide
  • Assignments to Europe 2021
  • Tax and Investment Facts CEE
  • Culture and Leadership
  • Diversity
  • WTS Global Academy
  • Career
  • Your Development
  • Jobs
  • Press
  • Events & Webinars
  • Contact
  • CI Guide
WTS worldwide
  • Albania
  • Angola
  • Argentina
  • Armenia
  • Australia
  • Austria
  • Bangladesh
  • Belarus
  • Belgium
  • Benin
  • Bolivia
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Burkina Faso
  • Burundi
  • Cambodia
  • Cameroon
  • Canada
  • Chile
  • China
  • Colombia
  • Costa Rica
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Dominican Republic
  • Ecuador
  • Egypt
  • El Salvador
  • Estonia
  • Finland
  • France
  • Georgia
  • Germany
  • Ghana
  • Gibraltar
  • Greece
  • Guatemala
  • Guinea
  • Honduras
  • Hong Kong
  • Hungary
  • Iceland
  • India
  • Indonesia
  • Iran
  • Iraq
  • Ireland
  • Israel
  • Italy
  • Ivory Coast
  • Japan
  • Kazakhstan
  • Kenya
  • Korea
  • Kyrgyzstan
  • Laos
  • Latvia
  • Lithuania
  • Luxembourg
  • Macao
  • Macedonia
  • Madagascar
  • Malaysia
  • Mali
  • Malta
  • Mauritius
  • Mexico
  • Moldova
  • Mongolia
  • Montenegro
  • Morocco
  • Mozambique
  • Myanmar
  • Nepal
  • Netherlands
  • New Zealand
  • Niger
  • Nigeria
  • Norway
  • Pakistan
  • Panama
  • Paraguay
  • Peru
  • Philippines
  • Poland
  • Portugal
  • Puerto Rico
  • Romania
  • Russia
  • Rwanda
  • Saudi Arabia
  • Senegal
  • Serbia
  • Singapore
  • Slovakia
  • Slovenia
  • South Africa
  • Spain
  • Sri Lanka
  • Sweden
  • Switzerland
  • Taiwan
  • Tanzania
  • Thailand
  • Togo
  • Trinidad and Tobago
  • Tunisia
  • Turkey
  • Turkmenistan
  • Uganda
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Uruguay
  • USA
  • Uzbekistan
  • Venezuela
  • Vietnam
  • Zambia
  • About Us
    About Us

    Here you will find more information on our organization’s structure, experts and global reach.

    Read more
    About Us Our CEO Our Board Our Global Executive Team Quality, Process & Risk Management
  • Services
    Services
    Read more
    Corporate Tax Customs Financial Services Global Mobility Indirect Tax
    International Corporate Tax Mergers & Acquisitions (M&A) Private Clients & Family Office Services Real Estate Services Tax Controversy
    Tax Technology Transfer Pricing & Valuation Services
  • Experts
    Experts

    With a representation in over 100 countries, our team offers local expertise on a global scale. Learn more about our experts.

    Read more
  • News
    News

    Find here the latest tax news for our locations worldwide.

    Read more
    Latest News
  • Knowledge
    Knowledge

    Our quick overview with downloads: newsletters, publications, surveys. 

    Read more
    Pillar Two - Global Minimum Tax Brochures Newsletters Surveys & Studies The Digital Tax Law Center (DTLC)
    The European Tax Law Center (ETLC) Climate Protection, Green Tax & Energy Tax Loss Carryback Real Estate Guide Assignments to Europe 2021
    Tax and Investment Facts CEE
  • Culture & Career
    Culture & Career

    The WTS Global Academy - Bringing value to the whole

    Read more
    Culture and Leadership Diversity WTS Global Academy Career Your Development
    Jobs
  • Locations
    Locations

    Our locations worldwide

    Read more
  • Search
27.11.2018

Poland changes TP regulations

Overview of the most important changes

Author
Maja Seliga-Kret
Partner
Poland
View Profile

The Polish parliament is currently proceeding with the amendment to the Polish Tax Law that covers transfer pricing. This is the most complex revision of the transfer pricing regulations since their introduction. The amendment aligns Polish regulations with the latest OECD Guidelines following the BEPS projects. The new law comes into effect from January 1, 2019. The most important changes include:

Transfer pricing methods
Apart from the standard TP methods (CUP, C+, resell minus, TNMM and Profit Split) in justified cases taxpayers will be allowed to use valuation techniques and other methods.

Recharacterization or non-recognition of the transactions
The tax authorities will have the power to disregard or delineate transactions that apply the principle of substance over form.

Safe harbor for low value-adding services
The OECD cost plus 5% for low-value-added services will be implemented. Taxpayers will be required to keep detailed calculations of the fees paid. Safe harbor for IC loans: applicable for loans up to five years in the event i) total loans from the related entities do not exceed PLN 20 million, and (ii) there are no warranty fees or other charges for granting a loan, and (iii) the interest rate is set based on the official announcements published by the MoF.

Transfer Pricing Adjustments
The purpose is to eliminate divergent tax rulings issued by the National Fiscal Information on the tax treatment of TP adjustments. The TP adjustment should be reported as income or cost for tax purposes in the period to which it relates, providing that the taxpayer has a statement from the related party confirming recognition for tax purposes.

Local File Documentation
New materiality thresholds apply for local files to limit the documentation burden: PLN 10 million (for transactions concerning tangible assets and financing) and PLN 2 million (for services and other transactions). Domestic transactions will be excluded from the Local File requirement unless the counterparties are located in an SEZ, receive tax relief or have incurred losses in a tax year. A Benchmark analysis will be an obligatory element of the documentation for each transaction in a Local File. The deadline for preparing the Local File will be nine months after the end of the tax year. Master File Documentation: related entities consolidated using the full or proportional method will be required to have a Master File if the group achieved consolidated revenues over PLN 200 million in the preceding financial year. The deadline for preparing the Master File will be 12 months after the end of the tax year. Master Files in English will be accepted (however, the tax authorities may request submission of a Polish version within 30 days).

However, taxpayers could choose to prepare its Local File and Master File documentation for 2018 under the new system.

Formal statement on documentation
All members of the taxpayer’s management board will have to submit a statement that the Local File was prepared and IC pricing is arm’s length. The lack of such a statement or making a false statement would trigger a potential fiscal penal liability consisting of a fine up to approx. PLN 21.5 million. The first submission deadline will be September 2020.

Penalties for the TP assessment
A new penalty system will replace the famous “50%” tax rate (applied where there is no TP documentation). The additional tax (over 19%) could range from 10% to 30% (the latter where the TP assessment is over PLN 15 million and there is no documentation). 

Article published in TP Newsletter #2/2018
Transfer Pricing Newsletter: Update on the recent news and cases
View publication
Newsletter Transfer Pricing

With this newsletter, we inform multinational companies on country-specific and international legislative documents and regulations.

Subscribe now
Articles you might be interested in

Our interdisciplinary team will be happy to help you acquire a detailed understanding of the rules, analyse the impact and develop a customised approach to ensure your company's future compliance to Pillar Two.

Pillar Two - Global Minimum Tax
read more

WTS Global is pleased to invite you to participate in an exciting virtual roundtable on the topic of the role of energy and electricity taxes in the current energy crisis.

Roundtable: The role of energy and electricity taxes in the current energy crisis - Views from France, Germany, Portugal and Sweden
read more

Tiago Marreiros Moreira and Filipe de Vasconcelos Fernandes of Vieira de Almeida discuss the types of policy objectives aligned with green taxation in Portugal, and predict upcoming changes.

The evolution of green taxation in Portugal
read more

Get in contact

If you have any questions about WTS Global or our global services, please get in touch.
We will respond to you as soon as possible.

Contact
About Us
  • About Us
  • Our CEO
  • Our Board
  • Our Global Executive Team
  • Quality, Process & Risk Management
Services
  • Corporate Tax
  • Customs
  • Financial Services
  • Global Mobility
  • Indirect Tax
  • International Corporate Tax
  • Mergers & Acquisitions (M&A)
  • Private Clients & Family Office Services
  • Real Estate Services
  • Tax Controversy
  • Tax Technology
  • Transfer Pricing & Valuation Services
News
Knowledge
  • Brochures
  • Newsletters
  • Surveys & Studies
  • COVID-19 Global updates
  • The Digital Tax Law Center (DTLC)
  • VAT Update for the Digital Economy
  • The European Tax Law Center (ETLC)
  • Tax Loss Carryback
  • Real Estate Guide
Culture & Career
  • Culture and Leadership
  • Diversity
  • WTS Global Academy
  • Career
  • Your Development
  • Jobs
Exclusive Cooperation With
© 2022 WTS Company Information Data Protection Disclaimer