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Poland: Amendment to CIT Act – transfer pricing modifications

30 January 2018

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Revolutionary modifications in transfer pricing (TP) regulations, introduced by the Corporate Income Tax (CIT) law amendment valid since January 1 2017, may be followed by more changes binding from 2018. A new draft CIT Law amendment was signed by the President on November 22 2017.

It introduces the below modifications.

No limit for expenditure on intangible services in the case of an APA

The amendment provides for the possibility of recognising all intangible and legal assets as tax-deductible costs if the taxpayer draws up an advanced pricing agreement (APA) with the chief of the National Tax Administration (NTA).

This rule can be applied during the term of the APA as well as both the tax year when the decision was made and the preceding year.

APA transactions exempt from TP documentation requirement

The legal amendments introduce another advantage for taxpayers who have APAs. An APA is already an effective method of mitigating tax risk and from January 1 2018 it also becomes exempt from the obligation for taxpayers in terms of preparing transfer pricing documentation. The exemption is available to taxpayers who receive a relevant decision from the chief of the NTA.

Arm's length nature of transactions in tax capital groups (TCG)

From January 1 2018, the provisions were repealed under which companies in TCGs were able to agree between themselves conditions of a transaction which might differ from the conditions available to unrelated entities. Therefore, effective January 1 2018, TCG entities must set the terms and conditions of transactions carried out with other TCG members at the market level.

Moreover, the amendment introduces an exemption from the obligation to prepare TP documentation for transactions between TCG entities. This obligation will now apply solely to transactions or other events between TCG entities with related parties outside the TCG.

Exemptions from documentation obligations for entities related solely through the state treasury or a local government unit

These TP provisions do not apply to entities that could be classified as related solely on the basis of a connection between them through the state treasury or a local governmental unit.


Magdalena Marciniak (
Tel. +48 22 322 68 88

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