Safe harbour is a mechanism to reduce documentation and transfer pricing reporting obligations provided that the taxpayer meets several statutory requirements. Once such conditions are met, the taxpayer is supposed to gain certainty as to the arm’s length nature of the price applied in the transaction carried out. However, is compliance with the conditions sufficient…
Group documentation is treated a bit lightly by taxpayers. After the hassle of preparing Local File with transfer pricing analyses and properly completing and submitting the TP-R form, many taxpayers would like to take a breather from transfer pricing obligations. However, we would like to remind you that for some taxpayers, group documentation is just…
In today’s dynamic business environment, organizations face constant challenges to remain efficient and competitive. In this context, one of the key aspects that often consumes a lot of time and resources is the preparation of various documents, such as financial records, reports, commercial offers, reports or tax documentation. The process of creating such documents requires…
The methods used to verify the transfer price are indicated in Article 11d of the CIT Act, i.e.: the comparable uncontrolled price method, resale prices, cost-plus, net transaction margin, profit sharing. However, taxpayers are not obliged to use only the above-mentioned methods when verifying transfer pricing. If it is not possible to apply any of…
On 17th August, the European Commission published rules governing the implementation of the CBAM mechanism during its transitional phase. The transitional phase starts already on October 1, 2023 and will last until the end of 2025. During this period, importers will be required to submit quarterly reports on imports of goods covered by the CBAM…
The primary purpose of a benchmarking analysis is to establish and verify that the terms and conditions in transactions between related parties correspond to the arm’s length principle. Although only one of the integral elements of transfer pricing documentation, these analyses are crucial for taxpayers to meet their transfer pricing obligations. Unfortunately, taxpayers usually realize…
Marketing contracts are an area where, in addition to the legal risks, particular attention should be drawn to the correct wording of tax provisions and tax consequences of the activities described therein. For instance, the supply of products to an influencer in exchange for promotional services constitutes barter, and the principal must document this transaction…
Identifying the links between the parties to a transaction is one of the first and at the same time the most important steps in the process of identifying transfer pricing obligations. Correct determination of linkages is particularly important if the parties to the transaction wish to take advantage of the exemption from the obligation to…
The economic situation in the global markets as well as the increase of banking reference rates, higher inflation rate could influence the conditions of intragroup financial transactions.
Judgment of the Supreme Administrative Court of 28 July 2023 (ref. I FSK 892/18) The recently announced judgment of the Supreme Administrative Court reopens the formerly hot-bottom issue of VAT taxation on the sales of commercial real estate. The essence of the dispute is the classification of these transactions as a sale of an organised…