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).

1000

Related content

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

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal