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Poland: New Transfer pricing measures effective in 2019

Poland: New Transfer pricing measures effective in 2019

Poland’s president in November 2018 signed legislation that includes new transfer pricing rules.


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The transfer pricing provisions—effective beginning 1 January 2019—repeal the existing transfer pricing rules under Article 9a of the Poland’s corporate income tax law and replace these with the new measures contained in Chapter 1a of the new law.

Among the new transfer pricing measures are the following items:

  • Amended definition of related parties: Under the new definition of "related parties," the transfer pricing provisions will reach a broader category of taxpayers. The threshold of "at least 25% ownership stake" (for determining which entities can be considered to be related parties) will also apply to instruments other than shares. Thus, related-party relations could be determined, for example, by reference to participation units or investment certificates held. Thus, for instance, investment funds may be found to be related parties.
  • Arm's length principle: The new provisions require related parties to enter into transactions that are based on market conditions. Also, responsible persons will be required to certify that the conditions applied with respect to related parties are consistent with the arm's length principle.
  • Transfer pricing adjustments: The new items also address the ability to make transfer pricing adjustments. The taxpayer will be able to make an adjustment if certain criteria are satisfied.
  • Transfer pricing documentation: The new law explicitly defines the purpose (that is, beyond the formal scope) of transfer pricing documentation. In general, the transfer pricing documentation must demonstrate that the conditions of the controlled transaction are in line with those that would have been entered into by unrelated parties.
  • New reporting rules: Taxpayers will be required to provide information about transactions with related parties on a new form "TP-R" (that will replace the existing form CIT-TP).


Read a November 2018 report [PDF 383 KB] prepared by the KPMG member firm in Poland

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