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Poland: Amendments to transfer pricing regulations from January 2015



Renata Dluska

Arkadiusz Zurawicki

A legislative act dated August 29 2014 (Journal of Laws from 2014, Item 1328) introduces – from January 1 2015 – changes to transfer pricing regulations in Corporate Income Tax Act (CIT Act) and Personal Income Tax Act. Key changes include:

  1. the list of related entities expanded to include partnerships;

  2. new types of transactions/agreements being covered by transfer pricing documentation requirements;

  3. permanent establishments (PEs) also being covered by transfer pricing documentation requirement; and

  4. a possibility to make tax return corrections due to a transfer pricing adjustment of domestic transactions/agreements.

List of related entities expanded to include partnerships

Starting January 1 2015 the definition of related party will cover entities which do not have a legal personality. For taxpayers it means that as of January 1 2015 a partnership must apply the arm's-length principle in any transaction with related parties and must prepare transfer pricing documentation.

New types of transactions/agreements will be covered by transfer pricing documentation requirement

Changes to transfer pricing regulations also impose an obligation to prepare transfer pricing documentation on taxpayers entering into:

  • partnership agreements;

  • joint venture agreements; and/or

  • contracts of a similar nature.

In these cases the requirement to prepare transfer pricing documentation applies to agreements if the total value of contributions by related shareholders or the total value of a joint venture will exceed the equivalent of €50,000 ($62,000) and €20,000 (in the case of agreements made with partners located in tax havens).

PE will be also covered by transfer pricing documentations requirement

Changes to the CIT Act also extend to settlements between Polish entities and their permanent establishments. Therefore, Polish taxpayers must apply the arm's-length principle and must prepare transfer pricing documentation for internal settlements between a Polish taxpayer and its permanent establishment.

Domestic transfer pricing adjustment

Under the new regulations, taxpayers may adjust income generated in transactions between Polish taxpayers, if:

  • the tax authorities recognise the conditions of a transaction made between Polish entities as non-arm's-length and adjust upward the income generated in this transaction by one of the entities; and

  • Polish entities file themselves an adjustment to income after tax inspection has been completed by tax inspection authorities which revealed non-arm's-length prices.

These changes aim to eliminate double taxation of transactions made between domestic related parties.

Applicability of new rules to agreements dated pre-January 1 2015

There are no transitional or grandfathering rules provided regarding applicability of the new law to agreements made before January 1 2015. The Ministry of Finance, however, presents a view that tax authorities may audit the conditions of partnership agreements made before January 1 2015 for arm's-length terms.

Renata Dluska ( and Arkadiusz Zurawicki (


Tel: +48 22 322 68 88


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