Transfer pricing adjustments under the magnifying glass of tax authorities – trends in 2023

Price adjustments are still not a clear-cut issue and raise questions for taxpayers. In 2023, administrative courts issued rulings on adjustments in three main areas described below.

Definition of transfer pricing adjustments

It is worth recalling that TP adjustments refer to transactions between related parties and are an important part of business practice. However, their definition is not clear and may be subject to various interpretations, despite the Ministry of Finance’s 2021 Clarifications, which have cleared up some of the doubts.

In tax practice, we can distinguish between adjustments about which we are certain (profitability adjustments – are TP adjustments; discounts, price list changes – are not) and ambiguous cases that may involve requesting an interpretation from the tax authorities. An example of such an ambiguous adjustment is the so-called true-up. This is a method of adjustment , in which budgeted costs are adjusted to actual costs, but there is no change in the profitability of the entity.

Tax settlement of the adjustment

The correct classification of an adjustment as a TP adjustment has a significant impact on the period in which it will be taken into account and its correct tax treatment.

In order for a TP adjustment to be recognized for tax purposes, the conditions set forth in the law must be met:

  • determine ex ante the market terms of the transaction to be adjusted (to be sure of the marketability of the transaction before or during its execution).
  • Thoroughly justify the TP adjustment, resulting from a change in relevant circumstances.

In a 2023 ruling, the court ruled that the company had not shown that it had established market prices prior to the transactions or reviewed them during the year. Only after the end of the year did the company analyze the market nature of the prices. The court found that the company had failed to prove the reasonableness of the adjustment, including that there were significant changes in circumstances beyond its control that affected the terms of the transactions established before and during the tax year.

If you are making a TP adjustment, it is a good idea to prepare an appropriate document confirming the fulfillment of the various conditions for its tax recognition.

It is also worthwhile to establish in advance your policy on monitoring the marketability of prices, the rules for carrying out the adjustment (such as choosing the market point to which the adjustment will apply) and their proper identification.

Specific issues

The taxpayer was considering the formation of a tax capital group (PGK)., The company asked the tax authority whether a transaction with a related entity outside the PGK, conducted on terms that deviate from the market and adjusted after year-end, would lead to the loss of PGK status. The tax authority answered in the affirmative, arguing that adjustments cannot have retroactive effect. The SAC also affirmed that a PGK cannot impose non-market conditions in transactions with non-group entities during their execution. The case has been referred for reconsideration.

As for special economic zones (SEZs), the issue of adjustments has not been considered by the courts recently. However, based on the interpretation, it can be concluded that transfer pricing adjustments should not be treated as separate economic events, i.e. in isolation from the activities covered by the support decision. This is because these adjustments relate to the equalization of profitability within the activities covered by the decision. This means that they can be considered as activities carried out within the SEZ.

And these are not all the challenges associated with adjustments. Once they have been properly identified, it is also necessary to consider issues related to the selection of the accounting document with which the adjustment will be accounted for, and to assess the effects of the adjustments in CIT, VAT or customs.

Since the topic is multifaceted and ambiguous, we offer a comprehensive overview to help determine whether the topic of transfer pricing adjustments and their risks actually applies to you and to what extent.

For the most important questions you may have about price adjustments and tips on how to prepare for them, visit


Marta Klepacz

Partner, Transfer Pricing Team

+48 533 889 036

Nina Walczyk_kwadrat

Nina Walczyk

Senior Consultant | Attorney at Law

+48 503 975 166