Although part of business operations for years, capital transactions raise doubts among taxpayers from transfer pricing perspective. This category includes the sale of shares between related parties, which – if the statutory documentation threshold is exceeded – triggers TP obligations. Nevertheless, each transaction of sale of shares should be valued at arm’s length. Such a…
Unfortunately, some taxpayers will not find the beginning of the year to be a relief after a demanding December which was packed with transfer prices matters. In fact, some may even face the need to complete further activities. One of them is the preparation of the Master File. Who is subject to the documentation obligation?…
In order to correctly determine the remuneration for providing an intangible asset, you need not only an analysis of the legal aspects of the asset. An analysis from the transfer pricing is also required. It is extremely helpful to make the so-called DEMPE analysis provided for in the OECD guidelines. A royalty fee for providing…
A new announcement by the Minister of Finance on the type of base interest rate and margin for the purposes of transfer pricing (safe harbor for financial transactions) was published on 23 December 2022. The Minister of Finance has updated the eligibility conditions for using the safe harbor simplification for financial transactions. New margin is…
What happens if you fail to meet transfer pricing obligations for 2021? Changes starting from 2022. Sanctions for failure to comply with TP documentation and reporting obligations for 2021 may prove severe: for both the company and the individuals responsible for running it (board members). Failure to meet transfer pricing obligations or statutory deadlines triggers…
Magdalena Zamoyska and Monika Grobelska of MDDP explain a series of amendments for 2023 that are expected to improve the accessibility and functioning of the Polish holding company model. A capital gains tax participation exemption for holding companies was introduced into Polish tax law under the so-called Polish holding company model from January 1 2022.…
The amendment to the Polish Deal, which has recently come into force, has brought favourable changes for taxpayers in the area of transfer pricing. The provisions introduced consist in changes in the area of transactions with tax havens, including, most notably, the repeal of controversial provisions concerning indirect tax haven transactions and the increase of…
The Polish Holding Company (PHC) is a solution that has been effective in the CIT Act since 1 January, 2022 and is intended to encourage investors to invest through Polish holding companies in other entities. In principle, the PHC allows for an exemption from taxation of dividend income paid by a Polish/foreign subsidiary to a…
On 8 November 2022[1], the Court of Justice of the European Union (‘the CJEU’) annulled the decision of the European Commission and the judgment of the EU Court, which recognized the individual ruling issued by the authorities in Luxembourg as providing a ‘selective advantage’ to Fiat Chrysler Finance Europe, which – according to the Commission…
Autumn has come and it has been followed by another changes in tax regulations, including the flat-rate income tax, or so-called withholding tax. Background to the changes The current version of the withholding tax regulations came into force on 1 January 2022. However, the fact that the legislator plans to amend the withholding tax rules…