On 9 April 2018 updated national transfer pricing profiles have been published on the website of the Organisation for Economic Cooperation and Development (OECD).
On the basis of the content of individual country profiles, we can find out whether the arm’s length principle has been adopted in a given jurisdiction as a basic rule for determining the market price level of OECD guidelines, whether methods have been introduced to estimate prices for transactions between related parties, which are: selection/applying rules, benchmarking rules, rules on intangible assets, intra-group services, cost-sharing agreements, general requirements for the creation of tax documentation, and administrative possibilities for avoiding and resolving disputes with tax authorities.
This is not a guide for drawing up documentation according to the local requirements of individual countries, but it is certainly a valuable source of information for taxpayers operating in international capital groups that will allow "bird flight" to compare the rules and requirements encountered in different jurisdictions.
Please refer to the following link:
http://www.oecd.org/tax/transfer-pricing/transfer-pricing-country-profiles.htm
In the case of the updated profile concerning Poland from our perspective, we find there confirmation of the rules resulting from current transfer pricing regulations.
It explains, among other things, that Poland has adopted the arm’s length principle and uses OECD guidelines as an auxiliary instrument, although formally the guidelines are not part of the Polish legal system.
It was clearly indicated that Polish legislation had defined five methods for assessing prices in transactions with related parties which are mandatory for tax authorities, while taxpayers may also use other methods.
The key role of the analysis of comparability was highlighted, also for the purpose of choosing the right method of price estimation (shortly the issue of the hierarchy of methods under Polish regulations was characterized).
As regards the principles of data collection for benchmarking analyses, it was stressed that Polish regulations as a formal requirement introduced the principle of primacy of national data in the process of drawing up comparative analyses.
In addition, a short description of the formal rules for drawing up tax documentation, mandatory content, indicating thresholds and requirements at different levels, has been presented.
The information collected in national profiles is presented in a concise, systematic manner. Their aim is to enable taxpayers to familiarise themselves with the requirements applicable in countries other than their country of residence.
This is not a guide for drawing up documentation according to the local requirements of individual countries, but it is certainly a valuable source of information for taxpayers operating in international capital groups that will allow "bird flight" to compare the rules and requirements encountered in different jurisdictions.
We encourage you to use the national profiles made available by individual jurisdictions, and in case of any questions concerning specific requirements in different countries, please contact us.
Author:
Leszek Dutkiewicz
Partner at Russell Bedford. From 2011 related to Russell Bedford Poland.
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.