Not every related-party transaction is subject to transfer pricing rules

Does a related-party transaction worth several hundred million zlotys automatically give rise to transfer pricing documentation obligations? 

In practice, many taxpayers begin their analysis by checking documentation thresholds. However, before determining the value of a transaction, it is worth answering one fundamental question: is the transaction subject to transfer pricing regulations at all? 

The position of the Director of KIS 

This approach is confirmed by an individual tax ruling issued by the Director of KIS on 18 August 2026 (ref. 0111-KDIB1-2.4010.327.2026.1.EWJ). 

The authority held that transactions involving reimbursed products, whose price results directly from the Reimbursement Act and decisions of the Minister of Health, fall within the exemption set out in Article 11b(1) of the CIT Act. 

What does this mean in practice? 

• transfer pricing rules do not apply to such transactions, 

• their value should not be taken into account when calculating documentation thresholds, 

• no obligation to prepare local transfer pricing documentation arises solely on account of these transactions. 

Price set by law = no influence of the relationship 

The authority’s position is consistent with the purpose of Article 11b(1) of the CIT Act. Where the transaction price is determined directly by legal provisions, the parties cannot freely set its level. It is therefore difficult to speak of the relationship between the parties affecting the terms of the transaction – which is the very foundation of transfer pricing regulations. 

Not only for the pharmaceutical sector 

This ruling is relevant not only to the pharmaceutical industry. It highlights an often-overlooked issue: before analysing documentation thresholds, it is worth establishing whether transfer pricing rules apply to the transaction in the first place. In practice, correct classification may mean no documentation obligations right from the outset.