Transfer pricing

Related parties have received more time to comply with their obligations connected with transfer-pricing documentation. According to Shield 4.0, the deadline for the submission of a transfer pricing report (TPR) and a statement of preparation of local transfer-pricing documentation has been extended:

1. until December 31, 2020 – where that deadline expires between March 31, 2020 and September 30, 2020;
2. by 3 months – where that deadline expires between October 1, 2020 and January 31, 2021.

In the case of a large group of taxpayers whose financial year coincides with the calendar year, those time-limits will therefore expire on 31 December rather than 30 September. What is more, the provisions also provide for an extension of the deadline for preparing the group documentation (the so-called Master file) until the end of the third month from the day following the day on which the deadline for submitting the statement expired.

Please be reminded that since January 1, 2019 related parties have been obliged to prepare local transfer-pricing documentation (the so-called Local file) for a controlled transaction of a uniform nature, whose net value will exceed in the financial year:

• PLN 10 000 000 – in case of commodity and financial transactions;
• PLN 2 000 000 – in case of a service or another transaction.

However, related parties consolidated using the full or proportional method which are obliged to prepare local transfer-pricing documentation, enclose a group transfer-pricing documentation if they belong to a group of related entities:

• for which a consolidated financial statement is being prepared;
• whose consolidated revenue exceeded in the previous financial year PLN 200,000,000 or its equivalent.

Source: Article 77 point 62 of the Act of 19 June 2020 on subsidies to bank loans granted to businesses affected by COVID-19 and on a simplified procedure for the approval of a composition in connection with COVID-19 (Journal of Laws of 2020, item 1086).

Anna Skórska, Tax Consultant, ATA Tax Sp. z o.o.

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