Advanced Pricing Agreements (APA)

Are you planning to enter into a high-value intra-group transaction? Did you know that you can secure this transaction in terms of transfer pricing? You can apply to the Head of KAS for an APA, which is a decision confirming that the conditions set in this transaction are arm’s length. Importantly, you can negotiate the market level of remuneration with the Head of KAS and, in the case of international transactions, simultaneously with authorities from other countries. This is crucial because transfer pricing regulations are not harmonized between countries, and possible audits could lead to double taxation.

Advance Pricing Agreements (APAs) are made between the taxpayer and the tax authority. The authority accepts the taxpayer’s choice and method of applying the transfer pricing method used in transactions with related parties. In practice, this provides the strongest protection for intra-group transactions.

For businesses, APAs can be an effective tool to reduce the risk of improper pricing with related parties and challenges from tax authorities regarding how prices are set.

What are the advantages of APA?

The arm’s length conditions established in the intra-group transaction are confirmed by the Head of KAS: for a period of 5 years and can be renewed for another 5 years.
For 5 years, increase the predictability of tax proceedings, especially in international transactions where transfer pricing regulations are not harmonized between countries. This eliminates uncertainty and makes obligations more predictable.

How can we help you?

We provide comprehensive support to obtain an APA decision:

It could be:

Unilateral APA – negotiated only with the Polish administration,
Bilateral APA – between two administrations,
Multilateral APA – with more than one administration.

Our support:

We will prepare or verify the existing model of cooperation between related parties for submission.
We will assist in the preparation of the APA application and the development of the necessary documentation.
We will provide support in negotiations and throughout the entire process of obtaining a decision.

Selected experiences

We already have secured more than a dozen unilateral and several bilateral APA decisions, including extensions for successive years. The total value of transactions covered by them exceeds PLN 1 billion. Contact us today to leverage our knowledge and experience for your business success.