The regulations on transfer prices and the transfer pricing documentation which were introduced on the 1st January 2015 are of great importance because.
Following changes were done:
Organisational units having no legal personality (such as partnerships) will also be obliged to prepare transfer pricing documentation, irrespective of what kind of entity is the other party to the transaction (be it an incorporated company or another partnership).
In addition, the regulations concerning preparation of transfer pricing documentation will apply to agreements forming a:
- a joint venture
- or a similar undertaking under which the total value of contributions made by the shareholders / value of the joint venture exceeds the PLN equivalent of 50,000.00 EUR (20,000.00 EUR for agreements entered into with entities established on the territory or in the country applying harmful tax competition).
The assessment of income and the obligation to prepare the documentation will apply also to taxable persons subject to limited as well as unlimited tax obligation in Poland whenever they allocate income to their permanent establishments.
It will be allowed to adjust income whenever the tax authorities assess extra income for domestic entities that do business on non-market conditions.
Source: Rödel & Partner Newsletter