The Polish New Deal also includes certain simplifications in Transfer Pricing (TP). These are mainly focused on loosening certain bureaucratic obligations while proposing "reasonable" deadlines for their fulfilment. They also attempt to reduce the number of existing interpretation problems.

Nevertheless, changes also broaden the scope of fiscal penalty restriction for incompliance in the area of preparation of local TP documentation.

Below we present a brief overview of selected Polish New Deal TP proposals:

1 Deadlines


  • Deadline for the submission of local Transfer Pricing documentation by the taxpayer to be extended to 14 days at the request of the tax authority (currently 7 days).
  • The deadline for preparing local TP documentation would be extended to the end of the 10th month after the end of the entity's tax year (currently 9 months).
  • The deadline for filing TCP-R information would be extended to the end of the eleventh month after the end of the entity's tax year (currently 9 months).
2 New transactions excluded from the obligation to prepare local TP documentation The new list of transactions for which local TP documentation is not obligatory may be broadened by:

  • domestic transactions with a PE
  • transactions covered by, i.a. a tax agreement concluded under a co-operative compliance program or 590 Ruling
  • transactions covered by the safe harbour mechanism for loans, credits, bonds.
  • so-called pure reinvoicing payments (but under additional conditions)
3 Value of transactions


  • Clarification of the transaction value for certain operations. In case of a deposit, the transaction value will refer to the value of the capital, in case of insurance or reinsurance contracts to the sum insured, and in case of a non-legal entity to the total value of the contributions made to the non-legal entity.
  • Linking the concept of the value of a controlled transaction with the VAT neutrality. For taxpayers without full right of VAT deduction (e.g. financial institutions), the thresholds will effectively decrease.
4 Statement on the preparation of local TP documentation


  • In the statement on the preparation of local TP documentation, which will constitute part of the TPR-C report, the taxpayer declares that the local transfer pricing documentation was prepared in accordance with the actual state of affairs, and that the transfer prices covered by the documentation are determined on terms and conditions that unrelated entities would determine between themselves.
  •  The arms length’s principle will also be met in the case of gratuitous/partially paid for benefits, if the income from such benefits was recognised for tax purposes.


5 Benchmarking / Compliance Local TP documentation does not need to include a benchmark in the case of:

  •  related party transactions made between micro or small enterprises or
  • tax “haven transactions” concluded with unrelated entities


Other changes cover, i.a. simplification in TP adjustments and application of the financial safe harbour mechanism.

It is however worth noting that elimination of the statement on preparation of local TP documentation as a separate (see point 4 above) is linked with the modification of penal fiscal sanctions on local TP documentation and TP information. The MoF is planning to introduce penalties for preparing documentation inconsistent with the actual state and failure to attach Master File documentation. Depending on the incompliance nature, the penalties can vary, with a theoretical maximum amounting to PLN 26.8 m (approx. EUR 6.2 m).