Do you have a support decision? Watch out for TP obligations!
The recent ruling of the Provincial Administrative Court in Poznań (I SA/Po 441/24) sheds important light on the practice of applying exemptions from the obligation to prepare transfer pricing documentation in the context of support decisions.
A company that did not generate income from activities covered by the support decision argued that it does not benefit from the exemption referred to in Article 17(1)(34a) of the CIT Act, and therefore may benefit from the exemption from the obligation to prepare transfer pricing documentation under Article 11n(1) of the CIT Act.
The court took a different view: merely holding a support decision means benefiting from the CIT exemption – even if no income was actually generated. As a result, this excludes the possibility of using the exemption from the documentation obligation (Article 11n(1) CIT).
This is an important signal for taxpayers operating within the Polish Investment Zone – holding a support decision may mean the inability to apply the exemption from the documentation requirement.
It is worth re-analysing your documentation obligations, especially in the context of ongoing and planned investments.