Adjustment of transfer prices (income adjustment according to benchmark) 2018. Inventories 2018, exposed 2019. How to treat it to CIT (cost 2018, cost 2019 or NKUP) in the light of changes in CIT 2019 and what about VAT? This is answered by a communication published on the website of the Ministry of Finance.
The tax books described above should be recognised in accordance with the rules applicable to the end 2018, which confirms the communication published 11 March 2019.
The new rules on the recognition of back-to-back price adjustments will apply to transfer price adjustments for controlled transactions. 1 January 2019
Act dated 23 October 2018 the amendment of the Personal Income Tax Act, the Corporate Income Tax Act, the Act – Tax Ordinance and some other laws (Journal of Laws of 2018, item 2193), hereinafter referred to as ‘the amending law’, specific provisions on transfer pricing adjustments have been introduced. These provisions govern corporate tax treatment [1] and personal income tax [2] adjustments to transfer prices made by the taxpayer. Those provisions entered into force on the day 1 January 2019
These provisions will apply to transfer price adjustments for controlled transactions carried out In 2019 (i.e. from 1 January 2019).
This is directly due to Article 26(1) the amending act, which provides that the amended provisions of the Personal Income Tax Act and the Corporate Income Tax Act (including provisions on the recognition of transfer price adjustments) shall apply to transactions or other events which have started and have not been completed before the day of the 1 January 2019, for that part of the transaction or other events that are executed in the tax year starting after the date 31 December 2018
A contrario transfer price adjustments issued In 2019, but concerning transactions or other events carried out In 2018 (i.e. up to 31 December 2018), should be recorded for the purposes of income taxes in accordance with the rules applicable to the end 2018
[1] Article 11e Act dated 15 February 1992 on corporate income tax (Journal of Laws of 2018, item 1036, as amended) in conjunction with Article 12(3aa) and (3l) point 2 and Article 15(1ab) and (4k) point 2 that law
[2] Article 23q Act dated 26 July 1991 on personal income tax (Journal of Laws of 2018, item 1509, as amended) in conjunction with Article 14(1ca) and (1o) point 2 and Article 22(1ab) and (7e) point 2 that law