Poland: Draft transfer pricing requirements | KPMG | BE

Poland: Draft transfer pricing regulations, documentation and reporting requirements

Poland: Draft transfer pricing requirements

The Ministry of Finance issued a second version of draft transfer pricing regulations that would amend the rules governing the tax treatment of transactions between related parties. Also, three decrees were published that concern: (1) details about the tax documentation requirements; (2) a country-by-country template for taxpayers whose consolidated revenues exceed €750 million; and (3) effective date rules including that the country-by-country reporting would apply for tax years beginning after 31 December 2015.


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A first or initial release of draft transfer pricing regulations was made in late April 2015. The second draft (released 15 June 2015) provides for the following:

  • An increase in the capital threshold percentage with respect to ownership of shares in another entity (thin capitalization and foreign controlled entities)—The initial draft proposed that the threshold percentage giving rise to a capital relationship within the meaning of the transfer pricing regulations would have been 5%. However, the second draft would be less restrictive and proposes that the threshold to be increased to 25%.
  • Documentation requirements—The first draft would have required documentation by taxpayers whose revenues or costs exceed €2 million. However, the new draft would revise these rules, so that documentation would be determined by reference to those transactions that have a “significant influence” on the level of income (loss). Also, if the taxpayer satisfied the €2 million threshold, it may not be required to prepare transfer pricing documentation because the taxpayer was not a party to any transaction with a related party having a “significant influence” on the taxpayer’s income (loss).
  • Requested by the tax authorities—The new draft provides the tax authorities may request documentation concerning transactions or events, if based on the taxpayer’s specific situation, it is probable that the value of the transaction was intentionally reduced to avoid the documentation requirement. The time for submitting this documentation would be 30 days from the date of the request (not the standard deadline of seven days).

Read a July 2015 report [PDF 295 KB] prepared by the KPMG member firm in Poland: Amendments to the draft of new transfer pricing regulations


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