Changes to the transfer pricing regulations are on the way
Consultations on two draft regulations on transfer pricing information have been launched. The consultation process will last until 6 May.
The draft regulations have been prepared in connection with the entry into force of the provisions of the Act of 29 October 2021 amending the Act on personal income tax, the Act on corporate income tax and certain other acts (Journal of Laws item 2105). So what will the regulations change? They will define:
– limited scope of information on transfer prices in case of transactions referred to in art. 11q item 3a of the CIT act (art. 23zc item 3a of the PIT act),
– limited scope of data provided in the transfer pricing information by entities exempt from the obligation to prepare local transfer pricing documentation, which are obliged to submit transfer pricing information,
– the content of the entity’s statement that the local transfer pricing documentation was prepared in accordance with the real state, and transfer prices covered by the documentation are determined on terms and conditions that would be agreed between unrelated parties,
– the manner of showing additional data in the transfer pricing information for transactions referred to in Art. 11o of the CIT Act/ Art. 23zf of the PIT Act (so-called haven transactions),
– new financial ratios dedicated to micro and small entities within the meaning of the Accounting Act,
– new financial indicator – share of costs of operating activity with related entities in costs of operating activity of the entity. This indicator will cover entities which are micro or small entities within the meaning of the Accounting Act and entities other than banks, insurance and reinsurance companies.
The provisions of the draft regulations will apply to transfer pricing information filed for the tax year beginning after 31 December 2021.
If you are looking for support in the area of preparing transfer pricing information – please contact Cyprian Werykowski of Thedy & Partners.