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).
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.
During the forum, discussions relating to the preparation of benchmarking analyses and recommendations for using data for these analyses included:
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.
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:
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.
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.
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
© 2018 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. 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. All rights reserved.
Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. 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 KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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.