Beneficial or actual owner? Further extension of the transfer pricing obligations, also to unrelated entities

Although from the editorial point of view, implemented changes are incomparable to those introduced a little over a year earlier, their impact on the transfer pricing obligations may turn out to be at least just as important. Most of all, it is worth emphasizing that while the previous amendment to the regulations, introducing separate chapters devoted to transfer pricing to tax acts, significantly limited the scope of documentation obligations, this year's changes have a completely opposite effect in this matter, among others by extending their scope to also a wide range of uncontrolled transactions i.e. concluded between unrelated entities. The changes in question consist in particular in extending the scope of transactions subject to verification in terms of compliance with the arm's length principle, in particular when the beneficial owner is established in the so-called "Tax haven". At the same time, the changes include the extension of the TP documentation obligations related to the transactions in question, which new elements were introduced for.

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• PKF Alert - Beneficial or actual owner. Further extension of the transfer pricing obligations, also to unrelated entities.pdf [PDF]