On 3 March 2020 We took part in the 9th Transfer Pricing Forum, during which representatives of business and science met again with representatives of KAS to discuss current problems with the application of transfer pricing regulations.
The representatives of the MF – the Transfer Price and Valuation Department, the Key Interests Department – indicated that the forum should change its existing formula. The work so far has focused on developing recommendations on the rules and solutions already in force, in the future the FCT is to be used to "forge ideas", to set the ground for future solutions.
Future themes
Among the topics for the Forum in the future were: implementation of BEPS 2.0, taxation of marketing activities, minimum tax on distribution activities. The MF representatives pointed out that the transfer pricing of KAS is currently dealt with by a number of people from different units isolated in the MF and KAS structures. In addition to the Transfer Pricing and Valuation Department, this subject is dealt with by the Key Interests Department, Control Supervision Department, Director of KIS.
The current work of the Forum has adopted the results achieved so far by working groups, including:
- • recommendations for describing the net transaction margin method were adopted
- • recommendations were accepted on the description of the price method for sales
- • recommendations for the interpretation and scope of the Chapter were adopted 4 TP Regulations (Restructuring)
Further work is underway on the selection of profitability indicators and verification methods for comparative data and statistical aspects of benchmarking and IP BOX topics.
TPR Information Plans
Much of the discussion was devoted to the subject of TPR information. MF representatives indicated that a modification of the interactive form submitted for 2019.
The modified form is to be able to add a text field in which the applicant can comment on the particular item of the form, if it considers it appropriate, for example if he has doubts on how to properly report the transaction according to the options available in the form.
An explanation of how to fill in TPR information is also being prepared.
The modified form is to be made available in March and explanations In April 2020 In view of the numerous questions concerning the possibility of postponement of the time limit first TPR information (for 2019 until the end of September 2020 in the case of a tax year consistent with the calendar year), it has been shown that the MF is not currently working on an extension of that deadline.
New Regulation from 2021
At the same time, it was announced that a new TPR regulation was planned to be adopted to apply from 1 January 2021 (to be used to submit information on 2020), which will lead to the development of a new TPR form.
During the sitting 3 March 2020 new working groups have been set up to address:
- • income adjustments;
- • clarification of general issues (including definitions of links and other key concepts);
- • TPR information.
In the further work of the Forum, we will participate, among others, in the working group on general issues.