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…
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…
In its judgment of 28 December 2022, issued by the Voivodship Administrative Court in Białystok (ref. I SA/Bk 467/22[1]), the court upheld the taxpayer’s complaint and discontinued the tax proceedings. The court found that the tax authorities had instrumentally initiated fiscal-criminal proceedings in order to suspend the running of the limitation period and had wrongly…
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…
What happens if you fail to meet transfer pricing obligations for 2021? Changes starting from 2022. Sanctions for failure to comply with TP documentation and reporting obligations for 2021 may prove severe: for both the company and the individuals responsible for running it (board members). Failure to meet transfer pricing obligations or statutory deadlines triggers…
The amendment to the Polish Deal, which has recently come into force, has brought favourable changes for taxpayers in the area of transfer pricing. The provisions introduced consist in changes in the area of transactions with tax havens, including, most notably, the repeal of controversial provisions concerning indirect tax haven transactions and the increase of…