Dear Sirs,
Please be informed that companies (with tax year equal to the calendar year) are obliged to prepare transfer pricing documentation for the year 2022 by the end of October 2023 and submit a transfer pricing information report (TPR form) as a rule by the end of November 2023.
With regard to the topic of transfer pricing documentation and related obligations, please refer to our publication.
Preliminary analysis of transactions with affiliated companies
- related party analysis;
- identification of related party transactions – their values, the relationship between the parties;
- determination of the scope of the taxpayer’s obligation to document related party transactions, including identification of homogeneous transactions;
- analysis of other conditions determining the need to prepare transfer pricing documentation;
- analysis of exemptions, identification of transactions that fall under the safe-habour provisions.
Preparing local documentation for transactions with affiliated parties
Where the documentation obligation is confirmed, the taxpayer is obliged to have documentation prepared in accordance with the regulations.
Preparation of the comparative analysis (benchmarking analysis)
Please note that from 2020, there is an obligation to prepare a benchmarking analysis for each documented transaction. A benchmarking analysis is simply an element of such documentation. Mostly, the benchmark is prepared on the basis of special databases using statistical analyses.
We would also like to remind you that the benchmarking analysis should be updated at least every three years, unless a change in the economic environment that significantly affects the analysis justifies an update in the year in which the change occurs.
Preparation of group documentation
Group transfer pricing documentation should be prepared for a given year when all the conditions specified in the CIT Act are met, i.e:
- the taxpayer is required to prepare local transfer pricing documentation (with related parties) for the year
- the taxpayer belongs to a group of related entities for which consolidated financial statements are prepared,
- the related entities are consolidated using the full or proportional method,
- the value of consolidated revenues of the group in the previous financial year exceeded PLN 200,000,000 or its equivalent.
If the obligation is confirmed, such documentation would have to be prepared by the end of the twelfth month after the end of the tax year. For taxpayers whose year ended on 31 December 2022, this means that the deadline is 31 December 2023.
Preparation of the TPR form
Due to the change in the 2022 regulations regarding transfer pricing reporting, i.e. waiving the separate statement on the preparation of transfer pricing documentation and the market nature of the prices used, the statement for 2022 will be an integral part of the TPR-C form.
In addition, the statement in the TPR-C will confirm both the market nature of the transaction and that the local transfer pricing documentation has been prepared in accordance in accordance with the facts.
Should you have any questions, please do not hesitate to contact us.
