During the X Transfer Pricing Forum, a declaration was made by representatives of the Ministry of Finance about the planned resignation of the obligation to make a statement on the compilation of transfer pricing documentation.
Instead of making a separate statement, the revised TPR form would include a separate item in which the taxpayer would provide information on whether the local documentation was drawn up. Such a change would certainly represent a reduction in the number of fully formal requirements currently incumbent on related parties.
Representatives of the Transfer Pricing and Wycen Department also presented other interesting simplifications to be undertaken in the near future:
exemption from the obligation to draw up local transfer pricing documentation for so-called ‘reactioned’ transactions, consisting of clearing between related entities the expenditure incurred for an unrelated entity;
exemption from the obligation to draw up local transfer pricing documentation for transactions in which taxpayers benefit from a simplified solution, the so-called safe Harbour for financial transactions (currently, transactions for which safe Harbours are used are subject to documentary obligations, but taxpayers are not required to draw up a benchmark for these transactions);
waiving the condition to confirm the correction of transfer prices in the annual tax return;
extension of the deadline for submission of the tax documentation at the request of the tax authority – from the existing 7 days from the date of receipt of the request to 14 days from the date of receipt of the request.
Simplifications presented at the Transfer Pricing Forum on 5 November 2020, are at the stage of the planned legislative work, and we cannot, as of today, indicate the expected date of their entry into force or indicate what the precise wording of the rules governing these assumptions will be – much can still change in this respect. However, these planned work is certainly aimed at real simplification of requirements or adaptation of individual solutions to the reality in which the related parties are operating, and we are therefore looking positively at the present plans.
Written by Leszek Dutkiewicz, partner of 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.