In the regulations is lack a definition of a transfer pricing adjustment (TP adjustment). However, it can be concluded based on the Clarifications of the Ministry of Finance that the purpose of a TP adjustment is to adjust (correct, amend) a transfer price to the level in line with the arm’s length principle in a…
Identifying documentation obligations is a key step in completing the tasks imposed by the transfer pricing regulations. Under the applicable regulations, the concept of a controlled transaction should be interpreted broadly. As a consequence, a number of business activities that are seemingly not subject to transfer pricing regulations may in practice trigger documentation obligations. An…
In connection with the preliminary agreement reached on 14 December 2022 between the European Commission and the European Parliament regarding the Carbon Border Adjustment Mechanism (CBAM), changes were introduced to the draft regulation that extend the scope of goods covered and the starting date. According to the current draft, the reporting regulations will apply from…
On 1 February, OECD released a Manual on the Handling of Multilateral Mutual Agreement Procedures and Advance Pricing Arrangements (MoMA). As a reminder, in 2022, OECD Manual on Bilateral APAs was published. MAP and APA are procedures designed to ensure the security of the taxpayer in the field of controlled transactions. They allow the acceptance…
Bartosz Głowacki of MDDP analyses the new rules surrounding the Polish Investment Zone, with significant tax windfalls to be found by intrepid investors. From January 1 2023 there are new rules on regional investment state aid in the Polish Investment Zone. The Polish Investment Zone provides corporate income tax exemption in return for investment in…
The deadline for submitting the CBC notification (CBC-P) for 2022 to the Head of KAS is coming soon – 31 March 2023 (for all entities whose financial year matches the calendar year). This obligation covers entities belonging to capital groups that are subject to the CBC-R. Who? The obligation applies to entities (which are…
Although part of business operations for years, capital transactions raise doubts among taxpayers from transfer pricing perspective. This category includes the sale of shares between related parties, which – if the statutory documentation threshold is exceeded – triggers TP obligations. Nevertheless, each transaction of sale of shares should be valued at arm’s length. Such a…
Unfortunately, some taxpayers will not find the beginning of the year to be a relief after a demanding December which was packed with transfer prices matters. In fact, some may even face the need to complete further activities. One of them is the preparation of the Master File. Who is subject to the documentation obligation?…
In order to correctly determine the remuneration for providing an intangible asset, you need not only an analysis of the legal aspects of the asset. An analysis from the transfer pricing is also required. It is extremely helpful to make the so-called DEMPE analysis provided for in the OECD guidelines. A royalty fee for providing…
A new announcement by the Minister of Finance on the type of base interest rate and margin for the purposes of transfer pricing (safe harbor for financial transactions) was published on 23 December 2022. The Minister of Finance has updated the eligibility conditions for using the safe harbor simplification for financial transactions. New margin is…