Starting 2021, related entities with the status of a micro or small business may prepare local files without a benchmarking analysis. Also in the TPR form, taxpayers do not fill in the boxes related to the analysis. Until now, these entities were only released from the need to file transfer pricing documentation upon the authorities’…
The latest interactive TP-R forms were published on 28 September (Wednesday) on the Ministry of Finance’s website. The forms are relevant for the IC-transactions carried out FY 2021. The release results from the regulations published by the Polish Ministry of Finance (for CIT and PIT payers) – which entered into force on September 28, 2022.…
The CIT Act-introduced transfer pricing regulations target primarily controlled transactions made between related entities. However, not everyone is aware that they also apply to transactions with third parties having their registered office or management in the territory or in a country applying harmful tax competition, i.e. the so-called tax haven entities. The topic of tax…
Documentation obligation not triggered by the redemption of shares – another favorable decision by a District Administrative Court Redemption of shares in a company is an institution governed by the Code of Commercial Companies and Partnerships (KSH). It has been disputed between taxpayers and tax authorities from the perspective of transfer pricing obligations for several…
Type of remuneration established within transaction should reflect the functional profile The functional analysis is a key item of the transfer pricing documentation. It determines precisely the functional profile of the parties to the controlled transaction and introduces the risks involved. Consequently, it supports determining the arm’s length remuneration due. An example of how a…
Which transactions are not subject to documentation obligations? There are transactions or activities between related entities that may at first glance imply transfer pricing obligations. They are actually not controlled transactions in the context of TP regulations. Since Local File is compiled for a ‘controlled transaction’, you should verify that the business event in question…
To document a loan, or not, that is the question! Financial transactions are among the most frequently documented transactions taxpayers make with related parties. In fact, they accounted for over 40% of the reported transactions according to the TPR-C forms filed for 2019. Due to the discrepancies following the interpretation of the CIT Act in…
Another exemption unavailable for tax haven transactions Taxpayers for the first time need to identify possible transfer pricing obligations resulting from the so-called Indirect Tax Haven Transactions. The matter still raises a number of doubts. One of them was highlighted in the individual tax ruling of 15 June 2022 (ref. no. 0111-KDIB1-2.4010.676.2021.1.DP). Determining obligations triggered…
Authorities must also exercise diligence while preparing benchmarking analyses When preparing benchmarking analyses in the course of audits, tax authorities should perform them as diligently as is expected of taxpayers. Such conclusions follow from the ruling of the Supreme Administrative Court of 29 June 2022 (II FSK 3050/19)[1]. It dismissed the cassation appeal of the…
A benchmarking analyses is a key part of the transfer pricing documentation – it confirms the arm’s length nature of intra-group transactions. It is an important tool for taxpayers and tax authorities. The latter can use it to examine the arm’s length nature of transaction terms agreed between related entities. Do the authorities always correctly…