You are here: home page / Services / Taxes / Transfer pricing / Transfer pricing
Taxes are like a labyrinth where it is easy to lose your way. 
Our task is to provide you with a map. 

Transfer pricing

Transfer pricing

The general principle is that taxpayers involved in business dealings with affiliated entities should apply such terms and conditions of transactions which would be normally agreed between independent (unaffiliated) entities.

To implement the above-mentioned principle, the legislator stated that if the circumstances stipulated in the Act on Income Tax occur, the affiliated entities shall be obliged to prepare transfer pricing documentation. Failure to perform the above obligation entails the risk of applying a penalty rate of 50 percent by a competent body to the income of a given entity as defined by such bodyThe risk in the form of severe penal and fiscal consequences also occurs in case of Board Members or persons responsible for preparing transfer-pricing documentation.

The documentation obligation depends on the following:

1. Amount of revenue and costs within the meaning of the regulations on accounting, generated by the taxpayer in the previous fiscal year and determined on the basis of account kept.
2. Value of transactions/events of a single type determined depending on the value of the above-mentioned revenue.[1].

The entities whose above-mentioned revenue or costs did not exceed EUR 2 mln in the year preceding the fiscal year shall be absolved of their obligation to keep documentation.
Polish regulations on transfer pricing effective as of January 1, 2017 focus on the tertiary concept of the transfer pricing documentation:

1. Taxpayers with revenue or costs from EUR 2 mln to EUR 10 mln shall prepare the so-called local files, which include:

  • indication of the type and subject of transactions or events,
  • financial data, including cash flows concerning the transactions or events,
  • identification of affiliated entities executing transactions or events,
  • description of the course of transactions or events, including functions performed by the taxpayer and affiliated entities, assets employed thereby, including off-balance sheet assets, human capital and incurred risks,
  • description of the method and manner of calculation of income (loss) of the taxpayer, including a justification therefor,
  • indication of the method and manner of calculation of income (loss) of the taxpayer, along with a justification for choosing such method and manner, including an algorithm for calculating settlements referring to transactions or events and manner of calculation of settlement values that have impact on the taxpayer's income (loss).

Furthermore, taxpayers with revenue or costs over EUR 10 mln shall perform the so-called benchmark analysis and submit with the tax return a summary report on transactions and other events involving affiliated entities, i.e. CIT-TP/PIT-TP.

2. Taxpayers with revenue or costs over EUR 20 mln shall produce the so-called master files, which include:

  • indicate an affiliated entity, who prepared the information on the group of affiliated entities, including the date of filing the annual tax return thereby,
  • organizational structure of the group of affiliated entities,
  • description of transfer pricing principles (master file) implemented by the group,
  • description of business activity run by the group,
  • description of material intangible assets held, created, developed and used by the group in its business,
  • description of the financial situation between the entities creating the group, including in particular consolidated financial statement prepared by the affiliated entities creating the group,
  • description of agreements on corporate tax executed by and between affiliated entities creating the group and tax administration authorities in other countries, in particular unilateral previous price agreements.

3. Taxpayers with consolidated revenue exceeding EUR 750 mln shall be responsible for (apart from the above-mentioned local files and master files) country-by-country reporting, including a report on income and taxes paid as well as places of business activities run by subsidiaries and foreign offices that belonged to the group of companies in a given fiscal year.

Other material information on the transfer pricing obligations:

  • The documentation must be prepared not later than by the date of filing the tax return for a given fiscal year.
  • The taxpayer or, in practice, persons authorized to represent the taxpayer, shall sign and enclose with the tax return a representation on preparing the transfer pricing documentation.
  • The tax documentation concerning the transactions or events continued in the following fiscal year, which have significant impact on the amount of income (loss) of the taxpayer, shall be reviewed and updated on a periodic basis, at least once per fiscal year, before expiration of the deadline set for filing the tax return for the subsequent years.
  • The taxpayer shall submit complete documentation within 7 days from the date of notification sent by a tax authority.
  • The aforesaid benchmark analysis should be updated at least every 3 years.
  • The obligation to prepare the transfer pricing documentation for a given fiscal year makes it necessary to prepare such documentation for another fiscal year as well, regardless of the amount of revenue generated in a year, during which the revenue documentation was prepared, or regardless of the costs incurred within the meaning of the regulations on accounting.

Unfortunately, experience shows that fulfillment of the transfer pricing obligations imposed by the legislator gives rise to many difficulties for taxpayers.

Therefore, in case of any doubts or problems related to the fulfillment of the transfer pricing obligations, you are welcome to contact our experts. 


If you have any questions or concerns - please contact us.

Name and surname: *
Company: *
E-mail **:
Telefon **:
I hereby consent to receiving electronic commercial information from PKF Consult Spółka z ograniczoną odpowiedzialnością Sp.k. with its registered office at ul. Orzycka 6 lok. 1B in Warsaw to the provided email address, in accordance with Article 10(1) of the Act on Electronic Services of 18 July 2002 (Journal of Laws, Dz.U. of 2002, No. 144, item 1204, as amended).
Pursuant to Article 172 of the Telecommunications Law Act of 16 July 2004 (Journal of Laws, Dz.U. of 2017, item 1907), I consent for PKF Consult Spółka z ograniczoną odpowiedzialnością Sp.k. with its registered office at ul. Orzycka 6 lok. 1B in Warsaw to use a terminal device (telephone) for the purposes of direct marketing activities performed by telecommunications means.
If you want to receive a newsletter from PKF Consult, you need to accept the Rules and Regulations. The consent is voluntary and it can be withdrawn at any time by sending a relevant statement to the email address:
* mandatory fields
* phone number or e-mail address - one is required
See our Privacy Policy
strefa inwestora
GoldenLine LinkedIn YouTube Facebook Google+ SlideShare Isuu

This site uses cookies

By continuing to browse the site, you are agreeing to our use of cookies. Find out more.

Dziękujemy za Twoje zaufanie