The MF has published the latest statistics on the procedures for concluding prior price agreements.
Only a little while ago, simplified pricing agreements were the subject of the transfer pricing agreements with the Ministry of Finance.
At present, the government's draft law on the settlement of disputes concerning double taxation and the conclusion of prior price agreements is at the stage of parliamentary work, but any provisions on simplified agreements have been removed from it.
On the grounds of this decision, it was pointed out that taxpayers – potential addressees of simplified price agreements – made a lot of comments on the proposed solution.
The fact is that the government's proposal for solutions in this area was far from ideal (and very limited about the issues that could have been the subject of a simplified APA), but at least in some cases it could have meant faster and far cheaper reaching an agreement with MF.
It was particularly interesting to allow the proposal already submitted to be transferred on a basic basis for further examination in the form of a simplified price agreement. No doubt it was. one from the factors that caused that in space 2018 and 2019 The number of requests for prior price agreement has increased significantly.
The increase in interest in the possibility of concluding an APA is apparent on the basis of the statistics presented by MF.
first the prior price agreement was concluded in 2006.
From 2006 to the end 2017 has been submitted 98 applications for price agreements were concluded together during the same period 55 price agreements.
In 2018 applications were submitted 98, over the whole 2018 included 10 price agreements.
From the top 2019 to 30 September 2019 submitted 39 applications have already been made 10 agreements.
The number of proceedings currently pending is also significant – this is a combination of 155 proceedings, the vast majority of which – 134 concerns the possibility of a unilateral price agreement, 20 – These are requests for bilateral agreement and 1 Proposal for a multilateral agreement 1 .
What is the basic benefit of the price agreement? It can be pointed out that the key to taxpayers are two aspects.
After first during the period of validity of the decision on the agreement, the tax authority will not determine (estimated – ed.) the tax liability under the income tax laws, in so far as the income shown by the taxpayer has been determined in accordance with the agreement concluded.
After second for transactions covered by a prior price agreement decision, the taxpayer is not required to draw up local tax records.
Prior price agreement may be concluded for a maximum period 5 tax years, the procedure for its conclusion should be completed within the time limit 6 months (unilateral) 12 months (bilateral) or 18 months (multilateral) and the cost of the procedure may range from 5,000 PLN to 200,000 PLN. According to this government draft law on the settlement of double taxation disputes and the conclusion of prior price agreements, a prior price agreement may relate to the period from the beginning of the tax year in which the application was made.
1 Reference to statistical information published by MF: https://www.podatki.gov.pl/ceny-transferowe/procedury-map-i-apa-statystyki/uprzednie-porozumienia-cenowe-apa/statystyki/
Author: Leszek Dutkiewicz, partner Russell Bedford Poland. Associated with the company from 2011. Director of RBP office in Katowice. In years 2008 – 2011 worked for leading consulting companies (Ernst&Young, KPMG, BDO) providing tax advisory services.
He specializes in tax and economic law, primarily in international tax law, tax proceedings, VAT and transaction prices. Author of a publication on tax, civil and international law issues. Lecturer in tax law training. He has legal education, in 2008 graduated from the Faculty of Law and Administration of the Jagiellonian University.