Changes in the base interest rate and margins – announcement regarding transfer pricing!

The new Notice of the Minister of Finance on the announcement of the type of base interest rate and margin for transfer pricing (safe harbor for financial transactions) has been published!

Conditions for safe harbor in financial transactions

The Finance Minister has updated the conditions authorizing the use of safe harbor simplification for financial transactions.

The Notice indicated that, as in the previous year, the type of base interest rate for loans:

a) in PLN – represents WIBOR 3M or WIRON 3M Compound Rate,

b) in US dollars:

• represents the 90-day Average SOFR,
• may be USD 3M LIBOR – for loans granted before January 1, 2022,

c) in euro – represents EURIBOR 3M,

d) in Swiss francs – represents the SARON 3-month Compound Rate,

e) in British pounds:

• constitutes the SONIA 3M Compound Rate,
• may be GBP 3M LIBOR – for loans granted before January 1, 2022.

According to the Notice, the margin:

1. for the borrower is a maximum of 1 percentage points,
2. for the lender is a minimum of 2 percentage points,
3. is the sum of the absolute value of the base interest rate and the value specified in either a or b, where the value of the base interest rate specified in item 1 is less than zero.

The type of base interest rate and the amount of the margin announced in the published Notice are effective as of January 1, 2024.