Remuneration in transactions between related parties should be determined on an arm’s-length basis: on such terms as third parties would determine between themselves. Otherwise, in the event of an audit, their arm’s length nature is expected to be challenged.
Tomasz Michalik and Marek Przybylski of MDDP review important changes to the Polish VAT Act and preview upcoming revolutionary e-invoicing implementation. It is the third time an amendment to the VAT Act in Poland is referred to by the Ministry of Finance as ‘SLIM VAT’. There are many changes introduced by this act, but most…
One of the key matters for preparing a benchmarking analysis is the comparability of underlying data. What if the data are not perfectly comparable? If that is the case, it may be necessary to apply comparability adjustments When comparability adjustment is a good thing? The comparability adjustment seeks to increase the reliability of a benchmarking…
The provision of toll manufacturing services to a taxable person from another country does not necessarily create a fixed establishment of the recipient in the Member State of the supplier, the CJEU ruled in the judgment of 29 June 2023 in case C-232/22, Cabot Plastics Belgium. This is another extremely important judgement of the CJEU…
Not long ago, the global financial market was heavily discussing the topic of LIBOR index being replaced with a new interest rate. In Poland, the process of replacing the reference rate is underway and is scheduled to be completed in late 2024/early 2025. Our local change and the replacement of WIBOR and WIBID by WIRON…
Jacek Wojtach of MDDP Poland explains the Polish withholding tax rules and refund procedures, and the issues that could be addressed as the European Commission declares its intention to make legislative changes. On June 19 2023, the European Commission issued a statement signalling legislative work on simplifying and synchronising members states’ laws on pay and…
The Ministry of Finance has already made us look forward to annual changes in the TP-R form. Transfer Pricing information gets more and more detailed and complicated every year. This one is no different. We already know that the TP-R form will be expanded to include the so-called statement. By the way, the statement itself…
On 8 June 2023, the Court of Justice of the EU issued a judgment in case C-322/22, in which it stated that the provisions of the Tax Ordinance restricting taxpayers’ right to be granted interest on overpayments violate the fundamental principles of EU law. This means that taxpayers should be entitled to interests awarded on…
The rule under Polish tax law is a one-off tax levied on the same transaction, whereby – pursuant to Art. 2(4)(b) of the Act on Civil Law Transactions, the first to be analysed is the VAT treatment of transactions; and then – tax on civil law transactions (hereinafter: PCC). The assumption of the tax on…
During audits, tax authorities often scrutinize the increase/decrease in the interest rate on loans with reference to the results of the benchmarking. It may happen that the newly determined interest rate in an intra-group loan is considered non-arm’s length, which paves the way to estimating the taxpayer’s income. The ruling of the VAC in Bialystok[1]…