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...

Tax changes related to employment in Poland from the payer’s perspective New regulations that have significantly changed the Polish tax system for the second time in 2022 came into force on July 1. The tax amendment, the so-called Polish Deal 2.0, modifies the personal income 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...

MDDP and Osborne Clarke Scholarship Program for Ukrainian children Since the beginning of the war in Ukraine, MDDP and Osborne Clarke, in addition to ongoing support for refugees in areas where they need help most, sought to create a long-term aid program for Ukraine. Having gathered...

MDDP advised Lone Star Funds on the acquisition of 3 office buildings MDDP provided tax advisory to Lone Star Funds on the acquisition of 3 office buildings from Cavatina (Carbon Tower in Wroclaw, Tischnera Office and Ocean Office Park A in Krakow). The value of the offices amounts...

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...

MDDP on Polish Taxes I Real estate companies – the reporting deadline is approaching September 8, 2022 at 11:00 a.m. The real estate companies and their shareholders are obliged to report their shareholding structures to the tax authorities in Poland.  The provisions are new and give...

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...

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...

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...

The absurdity of Polish TP obligations covering transactions with third parties Participating in public consultations pays off! Eighteen months after the regulations came into force, the Ministry of Finance repealed the provisions on indirect tax haven transactions. Importantly, the...

Entrepreneurs benefiting from low lump-sum taxation in Poland The Personal Income Tax Act defines business activity (BA) as a gainful activity conducted on one’s own behalf, irrespective of results, in an organised and continuous manner, from which the revenues are not attributed...

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...

A new leader of MDDP’s customs and excise duty team On 1 August, Agnieszka Kisielewska – a tax advisor and expert of business organizations – became a partner and leader of MDDP’s customs and excise duty team. Her task is to support businesses in the customs and excise aspects of...

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...