We recently wrote on our blog about intangible assets and accounting for them. In this post, we would like to highlight another intangible asset issue, namely Hard-to-Value Intangibles (abbreviated HTVI). The term itself and the word “hard” used in it signals to us the problems that can be encountered when making transactions involving intangible assets…
In 2023, the deadlines for completing transfer pricing obligations for 2022 have been shortened. The starting point for fulfillment of TP obligations is reliable local documentation (Local File). Deadline for fulfillment of obligations For taxpayers whose tax year coincides with the calendar year, the deadline for Local File for 2022 is October 31, 2023. Admittedly,…
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…
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…
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…
Remuneration in transactions between related parties should be determined on an arm’s-length basis: on such terms as third parties would determine between themselves. Otherwise, in the event of an audit, their arm’s length nature is expected to be challenged.
One of the key matters for preparing a benchmarking analysis is the comparability of underlying data. What if the data are not perfectly comparable? If that is the case, it may be necessary to apply comparability adjustments When comparability adjustment is a good thing? The comparability adjustment seeks to increase the reliability of a benchmarking…
Not long ago, the global financial market was heavily discussing the topic of LIBOR index being replaced with a new interest rate. In Poland, the process of replacing the reference rate is underway and is scheduled to be completed in late 2024/early 2025. Our local change and the replacement of WIBOR and WIBID by WIRON…
The Ministry of Finance has already made us look forward to annual changes in the TP-R form. Transfer Pricing information gets more and more detailed and complicated every year. This one is no different. We already know that the TP-R form will be expanded to include the so-called statement. By the way, the statement itself…
During audits, tax authorities often scrutinize the increase/decrease in the interest rate on loans with reference to the results of the benchmarking. It may happen that the newly determined interest rate in an intra-group loan is considered non-arm’s length, which paves the way to estimating the taxpayer’s income. The ruling of the VAC in Bialystok[1]…