We would like to remind you that March 31, 2023 is the due date for preparing the group transfer-pricing documentation (so-called Master File) for 2021. We would therefore like to familiarise you with the most important issues related to the fulfilment of the above obligation.

Related parties

Related parties consolidated using the full or proportional method which are obliged to prepare local transfer-pricing documentation, must enclose a group transfer-pricing documentation if they belong to a group of related entities:

• for which a consolidated financial statement is being prepared;
• whose consolidated revenue in the previous financial year exceeded the amount of PLN 200 000 000 or its equivalent.

Deadline for preparation of Master File

The deadline for preparing group documentation has been extended until the end of the 3rd month, commencing on the day following the date on which the deadline for filing the statement on local documentation expired. This means that the taxpayers whose tax year ended on December 31, 2021, are obliged to prepare group documentation by the end of March 2023.

Elements of Master File

The group transfer-pricing documentation should contain the following information about the group:

• a description of the group,
• a description of the group's material intangible assets,
• a description of the material financial transactions of the group,
• financial and tax information of the group.

Detailed lists of the elements to be included in  group documentation is set out  in the regulations of the Minister of Finance of December 21, 2018, on transfer-pricing documentation - for corporate income tax and personal income tax, respectively.

Documentation may be prepared by another entity

There is no obstacle to the group transfer-pricing documentation being prepared by another related party within the group. Nevertheless, it should be noted that the preparation of a Master File by another group entity does not preclude the taxpayer’s liability for the completeness, i.e. inclusion of all the necessary elements required by law, of the documentation.

Group documentation in English

Pursuant to the regulations, group documentation may be prepared in English. In that case, however, the tax authority may request that the group transfer-pricing documentation be submitted in Polish within 30 days of service of such request.

Anna Skórska, Transfer Pricing Coordinator, ATA Tax Sp. z o.o.

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