18 December , 2015

The Ministry of Finance in Poland announced transfer pricing investigations in year 2016

The new Ministry of Finance announced that its priority will be to verify transfer prices between related parties.

Companies,  which will decide for a voluntary adjustment of their  tax returns will be able  to enjoy a interest on outstanding tax reduced by 50%. This reduction of the interest rates is introduced from 1 January 2016 – it applies to corrections of tax returns made no later than  6 months after the required date to file a tax return (art. 56a of the Tax Ordinance Act). However, this  benefit of a reduced interest of 50% shall also apply for correction made for past years. This special rule for the past years , so called 50% interest abolition  is offered until 30 June, 2016 (art 19 of the Act changing the Tax Ordinance).   So the Ministry of Finance is encouraging to file corrected tax returns for years 2011-2015 no later than 30 June, 2016.

The Ministry of Financed also announced that the tax authorities shall also focus on Quarter 4 of year 2015 to examine whether taxpayers have not booked in  December any charges to transfer the profit elsewhere.  The Ministry of Finance  says that such actions will be examined by tax authorities in Quarter 2 of year 2016.

TCA Advisers comment: the best way to prepare to these examination is to make  transfer pricing documentation for past years. Still for years 2015 and 2016 the present  rules  on transfer pricing documentation apply (the new rules according to BEPS, already passed by the Polish parliament,   shall generally apply  from year 2017). Still for year 2015 and 2016 benchmark study is NOT mandatory.

The above news is made for  information purposes only. It does not constitute advice or any activity as mentioned in the Act on Tax Advisers. TCA  Advisers does not take responsibility for any action taken on its basis. We encourage to seek advice from professional tax advisers, authorized to give tax advice under the law in effect.