Loans will be included in transfer pricing documentation

The essence of the question comes down to the obligation to prepare transfer pricing documentation with regard to financial transactions involving loans. The interpellation poses two questions in this respect: (1) If a loan agreement is included in the transfer pricing documentation prepared for a tax year, should the same loan agreement also be shown in the documentation prepared for each subsequent tax year until it is repaid, even if the agreement remains unchanged throughout the repayment period? (2) When examining whether the amount thresholds have been exceeded, should the value of outstanding amounts relating to loans concluded in previous years, which were shown in the transfer pricing documentation prepared for those years, be taken into account?

– According to the MF’s answer, a loan transaction should be shown in the transfer pricing documentation prepared in each, i.e. the first and the following, tax year until it is repaid, provided that in the given tax year the documentation obligation arises – i.e. the value of the loan exceeds the PLN 10,000,000 threshold. On the other hand, for a controlled transaction of a homogenous nature, comprising several loans, the capital values of the loans concluded in a given tax year, as well as in previous years, calculated in accordance with the rules presented above in the answer to the first question, should be taken into account – quotes the answer provided by Cyprian Werykowski, tax adviser, director at Thedy & Partners.