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Poland: Transfer pricing forum considers benchmarking studies, simplified APA procedure

Poland: Benchmarking studies, simplified APA procedure

A transfer pricing forum, organized by the Ministry of Finance, held its first meeting in April 2018 to consider practical problems and challenges related to benchmarking analyses and proposals for a simplified procedure for concluding advance pricing agreements (APAs).


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The mission of the transfer pricing forum is to provide a venue for discussions of transfer pricing issues among representatives of the Ministry of Finance, tax advisors, and the business community.

Benchmarking analyses

During the forum, discussions relating to the preparation of benchmarking analyses and recommendations for using data for these analyses included: 

  • Methods of processing and interpretation of results, based on the calculated market range
  • Use of comparative data based on the (local) data from the Polish market
  • Preparation and frequency of updating of market analyses for financial transactions
  • Comparative data search strategies
  • Significance and types of adjustments that increase data comparability in benchmarking analyses
  • The need to prepare a benchmarking analysis for low value-added services

As part of the discussion, the issue whether there was a need for and the appropriateness of preparing documentation for transactions between related domestic entities was also discussed.

Simplified APAs

In addition, representatives of the Ministry of Finance addressed draft provisions on simplified advance pricing agreements (APAs). The simplified APA procedure would be applied to specific transactions—such as low value adding services and simple intangible asset transactions (license fees). A simplified APA would be determined within three months, while the APA that would be granted would be applicable and binding for a maximum of three years (subject to extension). The application fee for a simplified APA would be a fixed amount, regardless of the value of the transaction, but the fee would be less than the fee that applies under the standard APA procedure.

Under the simplified APA procedure, the decision to grant an APA would be based on:

  • The taxpayer’s statement regarding functional analysis
  • A standardized application consisting of the descriptive part and financial data and indicators
  • The actual transaction data

There would not be a requirement to present financial forecasts, but there would be a need to introduce critical criteria for a given transaction.

The simplified APA procedure, as well as current APA proceedings, would require adequate protection of sensitive data and thus would be subject to a tax confidentiality clause. The Ministry of Finance plans to publish only statistics on APAs and simplified APAs annually.

Tax law changes

Draft legislative amendments to the tax law in connection with the introduction of regulations on the simplified APA program would be released for public comments, expected in late April or early May 2018. The legislative project has been submitted for intra-departmental consultations within the Ministry of Finance.

In addition, changes are planned with respect to standard APAs, with the change concerning the duration of the APA. Currently, an APA may be effective from the date of when the APA application is submitted. As proposed, the effective date of an APA would be from the beginning of the year in which the APA application was submitted.

Changes to income tax, transfer pricing forms

The Ministry of Finance intends to publish comments received concerning transfer pricing forms filed for corporate income tax and individual income tax purposes. The comments are expected to be released by the end of May 2018.


Read an April 2018 report [PDF 502 KB] prepared by the KPMG member firm in Poland

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