New rules for transfer pricing documentation

Agata Nieżychowska

Below we present the most important changes in transfer pricing documentation taking effect from January 1, 2019:

1. New transaction thresholds for Local file

The costs and revenues thresholds determining the scope of the TP obligations are eliminated. The new transaction thresholds are:

  • PLN 2 million in the case of service transactions and transactions other than commodity or financial transactions, 
  • PLN 10 million in the case of commodity and financial transactions,
  • PLN 100,000 in the case of transactions with entities from the tax havens. 

2. New rules regarding Master file

Pursuant to the new provisions, the obligation to prepare group documentation (Master File) concerns entities that jointly meet the below conditions: 

  • are obliged to prepare a Local File,
  • are part of a capital group for which consolidated financial statements are prepared, 
  • the group’s consolidated income exceeded PLN 200 million in the previous fiscal year.

Master File may be drafted in English but the tax authorities may request a Polish translation. If requested, the Polish version should be filed within 30 days.

3. New deadlines for preparing TP documentation

From 2019 taxpayers have 9 months from the end of the tax year to prepare local documentation and 12 months to prepare group documentation.

4. Simplifications for low value adding services and loans

Simplified solutions are applying to:

  • transactions covering low value adding services and loans by specifying the acceptable level of the mark-up / margin base low value adding services and loans will be specified
  • the interest rate on loans, which will be announced at least once a year. 

5. Documentation exemptions

The new regulations also provide for the exemption from the documentary obligation of transactions concluded by domestic related entities. Taxpayers are now able to take advantage of this exemption if each party to the transaction declares income in a given tax year and does not benefit from income tax exemption in connection with the activity conducted in a special economic zone.


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Agata Nieżychowska
Agata Nieżychowska
Tax Director