Approaching Deadlines for Transfer Pricing Documentation Requirements

Since January 1, 2022, new deadlines have been in place for fulfilling transfer pricing documentation requirements. For entities whose fiscal year aligns with the calendar year, the deadline for preparing local transfer pricing documentation is at the end of October 2023, and for submitting the Transfer Pricing Report (TPR) is at the end of November 2023. This means that it is the final opportunity to meet these obligations and avoid potential penalties for non-compliance.

Local Documentation

Related entities are required to prepare local transfer pricing documentation electronically by the end of the tenth month after the end of the fiscal year.

It is important to note that local documentation must be prepared for controlled transactions of a homogeneous nature, where the value exceeds the following thresholds for the fiscal year:

• 10,000,000 PLN for goods and financial transactions,

• 2,000,000 PLN for service transactions or other types of transactions.

Taxpayers conducting domestic transactions are also required to prepare transfer pricing documentation if the transaction value exceeds the following thresholds for the fiscal year:

• 2,500,000 PLN for financial transactions, and

• 500,000 PLN for transactions other than financial ones.

Transfer Pricing Information

In addition, related entities required to prepare local transfer pricing documentation must submit a Transfer Pricing Report (TPR) to the relevant tax office by the end of the eleventh month following the end of the fiscal year.

Since 2022, the TPR report includes a statement in which taxpayers confirm that they have prepared the local documentation in accordance with actual circumstances, and that the transfer prices included in the documentation were set on market terms.

Group Documentation

Related entities whose financial statements are consolidated using either the full or proportional method must attach the group transfer pricing documentation to the local file by the end of the twelfth month following the end of the fiscal year if they belong to a group of related entities:

• For which a consolidated financial statement is prepared,

• Whose consolidated revenue exceeded 200,000,000 PLN or its equivalent in the previous financial year.