Poland’s transfer pricing regulations are firmly in place and in line with OECD Guidelines. They pertain to both domestic and cross-border transactions and have been in effect since 2001.
While these regulations draw inspiration from OECD Guidelines, they aren’t formally acknowledged as primary law. Article 11 of the Corporate Income Tax Act forms the basis for applying the arm’s length principle. Key definitions and documentation requirements are outlined in Article 9a of the CIT.
Poland introduces a comprehensive definition of related parties. Related entities are those with a 25% share capital connection, including family-related entities. Relationships formed for non-legitimate economic reasons are also scrutinized.
Poland mandates certain taxpayers to prepare an “Executed tax strategy” report, including transfer pricing information. Exemptions apply to specific entities, and new transfer pricing adjustment mechanisms are introduced.
Poland has enacted rules targeting transactions with companies in tax havens. APAs have been in use since 2006, providing protection against audits.