Poland: No transfer pricing documentation or Local file reporting obligation, contribution to foreign company’s capital

Contribution to foreign company’s supplementary capital under German commercial law provisions did not constitute a controlled transaction

Local file reporting obligation on contribution to foreign company’s supplementary capital

A ruling issued to a taxpayer by the tax authority (case file 0111-KDIB1-1.4010.208.2022.1.MF (5 July 2022)) provides that a Polish entity contributing to a foreign company’s supplementary capital is not required to establish a Local file or satisfy any other transfer pricing documentation or reporting obligation.

The tax authority concluded that making a contribution to a foreign company’s supplementary capital under German commercial law provisions did not constitute a controlled transaction under Article 11a(1)(6) of the Corporate Income Tax Act, and thus was not be subject to the obligation of establishing a Local file.

Read a July 2022 report prepared by the KPMG member firm in Poland

 

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