Although part of business operations for years, capital transactions raise
Preparing a benchmark
- Transfer pricing benchmarks are not only mandatory but actually the most important part of TP documentation.
- Importantly, multi-million upward adjustment may be imposed in the absence of a benchmark as well as in the case of a benchmark that offers poor quality and does not meet the requirements, i.e. if it fails to justify the arm’s length nature of transactions.
- Therefore, it is crucial to develop high-quality benchmarks, because only these will safeguard you in the event of a dispute with tax authorities.
How can we help:
We will prepare transfer pricing analyses (benchmarking / compliance analyses) to help you determine or verify the arm’s length level of remuneration for various types of intra-group transactions (services, goods, financial, licensing, etc.).
You can be sure of the high-quality of our benchmarks because:
- We compile them using professional databases (accessible also to tax authorities and global tax advisory companies),
- We make a qualitative test of the sample – we determine whether the sample entities meet the comparability criteria,
- We do not ignore the relevant geographic area,
- Our benchmarks are in line with Polish TP regulations, OECD guidelines and the guidelines of the Transfer Pricing Forum,
- We select the appropriate transfer pricing verification method and the tested party in the transaction (for some methods),
- We apply financial ratios consistent with the TP-R Regulation – we minimize the risk of the authorities challenging them as incomparable,
- We analyze your internal transaction data to establish their potential for being part of the benchmark,
- We identify if COVID-19 had an impact on your business and transactions; if so, we will take it into account in the benchmark.
Our qualitative analyzes will make you feel secure when signing and filing the statement on the preparation of transfer pricing documentation and the arm’s length nature of prices applied between related entities.
What are your options?
|Goods and service transactions||Simplified option||Standard option||Extended option||Extended option + COVID-19 impact|
|Assumptions for the review of arm’s length remuneration||Automatic data selection||Automatic and additionally a manual review of data on websites||Automatic and additionally a manual review of data on websites, including the recommended point from the range||Automatic and additionally a manual review of data on websites, including the recommended point from the range as well as the COVID-19 impact taken into account|
|Databases||External databases – Polish and European||External databases – Polish and European||External databases – Polish and European||External databases – Polish and European as well as publicly available data on the impact of COVID-19|
|Outcome of works||Benchmarking report compliant with Polish tax regulations||Benchmarking report compliant with Polish tax regulations||Benchmarking report compliant with Polish tax regulations including the recommended point from the range||Benchmarking report compliant with Polish tax regulations including the recommended point from the range as well as conclusions from the COVID-19 impact analysis|
|Individual selection strategy||√||√||√||√|
|Automatic data selection||√||√||√||√|
|Additional manual data refinement||√||√||√|
|Additional calculations / adjustments to financial analysis||√||√||√|
|Indicating a recommended point from the range||√||√|
|COVID-19 impact analysis||√|
|Support from MDDP experts||2 h||4 h||4 h||6 h|
Feel free to contact us
Withholding tax remitters who in 2022 made payments to the