The deadline for fulfilling obligations related to transfer pricing documentation is approaching

Terminating transfer pricing obligations for the year 2021, for taxpayers whose fiscal year aligns with the calendar year, is December 31, 2022. 

During this period, taxpayers are required to

• Prepare local transfer pricing documentation (the so-called Local File),
• Submit transfer pricing information using the TPR form, and
• Submit a declaration confirming the preparation of local documentation.

This is therefore the final opportunity for taxpayers to fulfill their obligations and avoid potential fines for failing to submit the declaration or TPR form on time, or for providing information inconsistent with the actual state of affairs.

Local Documentation

It’s worth reminding that related entities are obligated to prepare local transfer pricing documentation for controlled transactions with a homogeneous nature, the net value of which exceeds in the fiscal year:

• 10,000,000 PLN for both goods and financial transactions,
• 2,000,000 PLN for service or other transactions.

Taxpayers engaging in offshore transactions are also required to prepare tax documentation if the transaction value for the fiscal year exceeds:

• 2,500,000 PLN for financial transactions, and
• 500,000 PLN for non-financial transactions.

Group Documentation

Related entities consolidated by the full or proportional method, which are required to prepare local transfer pricing documentation, must include group transfer pricing documentation if they belong to a group of related entities:

• for which a consolidated financial statement is prepared, and
• whose consolidated revenues exceeded 200,000,000 PLN or its equivalent in the previous financial year.

The deadline for preparing group documentation (the so-called Master File) has been extended to the end of the 3rd month following the day after the deadline for submitting the declaration. This means that taxpayers whose fiscal year ends on December 31 are required to prepare group documentation by the end of March 2023.