1. File CBC notification
- The obligation applies to entities belonging to capital groups that must submit information about a group of entities (the CBC-R report).
- The purpose of the CBC-P notification is to provide information on the entity responsible for filing the CBC-R report in the group. The deadline is 3 months from the end of the capital group’s financial year.
- For capital groups whose financial year ended on 31 December 2021, the deadline for CBC-P filing is 31 March 2022.
- The form is only filed electronically. Failure to submit it or filing it incomplete or inconsistent with the data available triggers the risk for the taxpayer of a fine of up to PLN 1 million.
2. Don’t forget about the ORD-U form
- The obligation to submit ORD-U applies to contracts (made in the tax year or implemented in the tax year and made in previous years) with non-residents.
- The information is prepared for the tax year and sent to the Head of the Tax Office within three months after the end of that tax year.
- From 1 January 2022, ORD-U is not required from entities filing the TP-R form. This simplification is not available to taxpayers and companies that are not legal persons who transact with tax havens directly or indirectly.
3. Update benchmarking analysis
- Transfer pricing analyzes are a mandatory part of transfer pricing documentation.
- Keep the transaction arm’s length! Benchmarking should be updated at least every three years, unless a change in the economic environment – to a degree significantly affecting it – justifies update in the year when this change occurs.
4. Prepare the local file
- Remember to include all information required by Polish tax regulations, including a benchmarking analysis.
- Local transfer pricing documentation is prepared by the end of the ninth month after the end of the tax year (this deadline will probably be postponed by 3 months).
5. File TP-R and TP statement
- Businesses that transact with related entities with a value exceeding statutory limits (PLN 2m, PLN 10m, PLN 500k, PLN 100k) must report them in the TP-R form.
- The TP-R form, in addition to the value of individual transactions, must feature the result achieved on a given transaction (together with a reference to the arm’s length range / financial indicators which are the result of the benchmark). Therefore, it is not possible to correctly complete the TP-R form without an updated benchmark.
- The form is filed electronically using the e-Deklaracje feature with the Head of the National Tax Administration.
- Businesses subject to the documentation obligation must also submit to the tax authority a signed statement on the preparation of local transfer pricing documentation for transactions with related entities, as well as tax haven transactions, along with confirmation of the arm’s length nature of the prices applied.
- The deadline for filing TP-R is 30 September 2021. If the approach from 2021 is repeated, the deadline will be extended by 3 months.
How can we help?
- transfer pricing documentation
- reviewing documentation obligations
- transactions with tax havens
- Advance Pricing Agreements
- benchmarking analyses
- business model analysis and evaluation
- TP-R reporting
- transfer pricing controls
MDDP’s Transfer Pricing team is made up of over 50 persons who provide advisory services in the field of transfer pricing. We support clients in justifying the arm’s length nature of intra-group settlements.
Last year, our team helped all clients who contacted us to meet their obligations on time.