Poland: Legislative proposal to expand scope of transactions subject to transfer pricing rules

Poland: Proposal to expand scope of transactions

Draft legislation to implement tax changes that generally would affect the real estate sector includes certain transfer pricing amendments—such as one extending the scope of transactions that must be verified for compliance with the arm's length principle, especially when the beneficial owner is located in a “tax haven” jurisdiction (i.e., a country or territory with a harmful tax competition regime).


The obligation to prepare a Local file would also be imposed on taxpayers and companies that are not legal entities conducting “non-controlled transactions” with entities having their place or residence, seat or place of management in a tax haven jurisdiction, if the transaction’s value in the given tax year exceeds PLN 500,000. 

For transactions conducted with entities located in tax haven jurisdictions, taxpayers would need to prepare a Local file that includes an economic justification for undertaking the transaction, as well as a description of the expected economic and tax benefits.

Read an October 2020 report [PDF 250 KB] prepared by the KPMG member firm in Poland

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