Transfer Pricing
Transfer pricing compliance and support for businesses operating in Poland
Transactions between related entities are a normal part of doing business within a corporate group. In Poland, however, they may give rise to extensive documentation and reporting obligations as well as potential tax risks.
We support Polish companies and international groups in identifying their transfer pricing obligations, preparing the required documentation and meeting Polish reporting requirements.
We also help clients assess the transfer pricing implications of changes to their transactions, business operations or group structures.
How we can help
Our transfer pricing services include:
identification of transactions subject to Polish transfer pricing regulations;
verification of documentation and reporting obligations;
preparation of local transfer pricing documentation (Local File);
support with Master File requirements, including preparation or review of group documentation for Polish transfer pricing purposes;
preparation and support with transfer pricing information and reporting (TPR);
preparation of benchmarking analyses and other analyses supporting the arm’s length nature of related-party transactions;
selected transactions or areas of particular tax exposure;
tax treatment of recurring business processes and transaction flows;
review and update of existing transfer pricing documentation;
review of transfer pricing compliance and identification of potential gaps or risks;
compliance with tax documentation and reporting requirements;
compliance with tax documentation and reporting requirements;
analysis of transfer pricing implications of new or modified related-party transactions;
support in responding to questions or requests from the Polish tax authorities concerning transfer pricing;
transfer pricing support in connection with tax audits, tax due diligence and business restructurings.
Where appropriate, we can coordinate our work with the client’s group tax team and advisors in other jurisdictions.
Polish transfer pricing obligations — without unnecessary complexity
For international groups, one of the practical challenges of transfer pricing compliance is that local requirements differ between jurisdictions.
A transaction that is properly documented from the group’s perspective may still give rise to specific documentation or reporting obligations in Poland.
Where the group already maintains transfer pricing documentation at an international level, we can assess the existing materials from the perspective of Polish requirements and identify any additional steps that may be necessary locally.
Our objective is to make the local compliance process manageable and ensure that the Polish entity and the group understand what is required and when.
Documentation should reflect the actual transaction
Transfer pricing documentation should not exist separately from the business it describes.
We seek to understand how a transaction actually works: what the parties do, which functions they perform, what risks they assume and how the remuneration has been determined.
This allows the documentation and supporting analyses to reflect the economic substance of the transaction rather than merely satisfy a formal requirement.
Where the business model or transaction has changed, we also consider whether the existing documentation and supporting analyses remain appropriate.
Beyond annual compliance
Transfer pricing issues are easier to identify before a new transaction or significant business change is implemented than after the reporting deadline — or during a tax audit.
We therefore support clients not only with annual documentation and reporting obligations, but also in identifying transfer pricing implications when:
- new related-party transactions are introduced;
- the scope or value of existing transactions changes materially;
- a restructuring affects transactions between related entities;
- a group changes its operating or distribution model.
Where such changes require further transfer pricing analysis, we help the client identify the relevant issues and determine the appropriate next steps.
In this way, transfer pricing can be considered together with the broader tax and business implications of the contemplated change.
Transfer pricing as part of the wider tax picture
Related-party transactions may also have implications for corporate income tax, withholding tax, VAT or other areas of Polish taxation. They may become relevant during tax due diligence, a tax risk review, a restructuring or a dispute with the tax authorities.
Where appropriate, we therefore analyse transfer pricing matters together with the wider tax implications of the client’s transactions and business model.
This allows us to identify issues that might otherwise be missed when transfer pricing is treated purely as an annual documentation exercise.
Need support with transfer pricing in Poland?
Whether you need to determine your Polish transfer pricing obligations, prepare Local File or Master File documentation, complete TPR reporting, obtain a benchmarking analysis or assess the implications of a new related-party transaction, we can help you navigate the local requirements.
Talk to us about your transfer pricing obligations in Poland.
Contact
Katarzyna Gorączkowska (Schmidt)
tel. +48 509 726 331
email. k.goraczkowska@bthink.pl
