Poland tightens transfer pricing oversight: what’s coming next?

In recent months, transfer pricing has become a key focus for tax authorities in Poland. Although the number of audits has declined, the focus is sharper. The rising amounts of adjusted taxable income and the creation of new structures within the Ministry of Finance and the National Revenue Administration (Krajowa Administracja Skarbowa, or KAS) show that related-party transactions – and potential profit shifting outside Poland – have become a top government priority.

Irregularities in financial transactions, licensing agreements, transactions involving intangible assets, services, or business restructurings in Poland may, in particular, expose taxpayers to transfer pricing audits.

In transfer pricing, the value of adjusted income, representing profits shifted abroad, has almost doubled year on year. In the first half of 2025 alone, uncovered irregularities were already 30% higher than in all of 2023. In response, the Ministry of Finance and KAS have intensified their efforts to counter aggressive tax planning.

A special Expert Group for Counteracting Aggressive Tax Planning in Corporate Income Tax was established to prepare recommendations for strengthening the system. It will focus on four key areas:

• International corporate income tax frameworks;

• Harmful planning patterns;

• Systemic safeguards; and

• International cooperation.

At the same time, the authorities launched the KAS Competence Centre in Kraków. This specialised unit identifies and neutralises optimisation schemes.

These initiatives are part of a broader effort to curb aggressive tax behaviour and reinforce the integrity of the tax system.

Building on these efforts, Polish authorities are now considering another step – periodic transfer pricing audits for the largest taxpayers, with annual revenues exceeding around PLN 5 billion (about €1.2 billion). Such audits, potentially held every three years, would verify the accuracy of related-party transactions and identify risks early. This proposal aligns with a broader European trend towards greater transparency and proactive tax risk management rather than reactive enforcement.

In this tightening environment, certainty and predictability are becoming essential for large taxpayers and investors. One of the most effective tools to achieve this is the advance pricing agreement (APA), which allows companies to agree on transfer pricing methods with the tax authority in advance, providing long-term security against audits and disputes.

Poland also participates in international cooperation programmes such as the International Compliance Assurance Programme (ICAP), coordinated by the OECD, and the European Trust and Cooperation Approach (ETACA), an EU pilot initiative. Both rely on dialogue and information exchange between taxpayers and multiple tax administrations, offering taxpayers a chance to resolve issues proactively, avoiding double taxation and improving transparency across jurisdictions.

The Ministry of Finance and KAS have also indicated plans to promote the Cooperative Compliance Programme, marking a shift from a purely control-based model towards one grounded in transparency and trust.

For companies with solid documentation, sound benchmarking, and effective compliance processes, these instruments can serve as valuable safeguards in an increasingly data-driven tax landscape.

Taxpayers should take the following steps to prepare for this tightening environment:

• Assess their current transfer pricing policies – ensure they are aligned with the latest regulations and audit expectations.

• Review their documentation to ensure all related-party transactions are fully documented, with clear justifications for pricing. Keeping benchmarks up to date is key.

• Consider using certainty tools – engage in APAs, the ICAP, the ETACA, or the Cooperative Compliance Programme to mitigate future audit risks.

• Prepare for periodic audits – strengthen compliance processes and ensure all supporting documents are in place.

• Monitor regulatory changes – stay updated on evolving tax legislation and audit practices in Poland and the EU.

Transfer pricing oversight in Poland is becoming more rigorous, with more frequent and targeted audits for large groups. Companies with strong documentation and risk management processes can use tools such as APAs and the ICAP to navigate this evolving landscape, ensuring compliance and reducing uncertainty in a changing fiscal environment.