Among the numerous legislative changes, starting from 1 January 2022 transfer pricing regulations have also been amended and change formal and documentation obligations.
The major changes include:
Changes to formal obligations:
- TP-R Form – the taxpayer will be required to submit the TP-R form to the Head of the Tax Office competent for the taxpayer (and not, as before, to the Head of National Revenue Administration).
- Statement on preparation of transfer pricing documentation and on arm’s length nature of prices – will be combined with the TP-R form (it used to be a separate document beforehand).
- Abolished obligation to submit the ORD-U form for taxpayers/companies which are not legal entities, which are obliged to submit the TP-R and do not perform the so-called “tax-haven transactions”.
- Extended reporting and documentation deadlines:
- preparation of local transfer pricing documentation – by the end of the 10th month following the end of the entity’s tax year,
- submission of TP-R transfer pricing information – by the end of the 11th month following the end of the entity’s tax year,
- submission of local TP documentation by the taxpayer at the request of the tax authority – 14 days.
- Clarified manner of determining the value of a controlled transaction:
- in the case of a deposit (which also includes bank deposits) – the transaction value refers to the equity value,
- in the case of non-corporate entities- the transaction value refers to the total value of contributions made to the non-corporate entities.
Changes in the scope of documentation obligations:
- Extended catalogue of exemptions from the obligation to prepare local transfer pricing documentation for:
- transactions between foreign permanent establishments located in Poland with related entities as parent companies thereof,
- transactions between a non-resident related entity located in Poland and a related entity that has tax residency in Poland,
- controlled transactions covered by a tax agreement and an investment agreement,
- controlled transactions covered by the safe harbour mechanism for loans, credits, bonds,
- transactions concerning settlements with regard to the so-called net reinvoicing (provided that certain conditions are met).
- Introduced possibility of waiving the preparation of benchmarking/compliance analysis for:
- controlled transactions concluded by taxpayers that are micro or small entrepreneurs (possibility to apply for the tax year beginning in 2021),
- transactions other than controlled transactions concluded with so-called tax havens (direct transactions) or in which the beneficial owner of the counterparty is a resident of so-called tax havens (indirect transactions), covered by the documentation obligation (possibility of application for the tax year beginning in 2021).
- Clarified moment for which a loan (facility, bond) agreement should comply with the conditions of the safe harbour mechanism with respect to interest rates – the terms and conditions should be met each time a loan agreement is amended.
- Transfer pricing adjustments:
- allowed possibility to apply an adjustment when the taxpayer has received an accounting evidence from a related party that confirms the TP adjustment,
- lack of obligation to inform about the TP adjustment in the annual return – one of the formal conditions for the effective making of such an adjustment repealed.
- Added statutory definition of a tax agreement and an investment agreement within the meaning of the Tax Code.
- Changed reference period from a financial year to a tax year in transfer pricing regulations.
- Clarified documentation obligation for companies forming a tax capital group.
If you are interested in obtaining further information, or would like to discuss the impact of the above changes please contact:
|+ 48 665 746 360
|+ 48 501 108 261
|+ 48 692 558 020
or your advisor at MDDP.