Transfer pricing documentation for 2022 – what should you keep in mind?
Transfer pricing documentation (DCT) is a set of documents and information that enterprises are required to prepare and store in order to document compliance with the principles of setting transaction prices between related entities. Transfer pricing refers to the prices at which related companies (e.g. from the same capital group) conduct transactions with each other. It aims to ensure transparency and enable tax authorities to assess whether transaction prices between related entities are set in a manner consistent with market conditions.
Statutory transfer pricing limits for 2022
The Income Tax Acts specify the thresholds which, if exceeded, oblige the entity to prepare transfer pricing documentation. The current documentation thresholds are:
- PLN 10,000,000 – for a commodity transaction;
- PLN 10,000,000 – for a financial transaction;
- PLN 2,000,000 – for a service transaction;
- PLN 2,000,000 – for a transaction other than the above.
In the case of transactions with an entity from a country applying harmful competition, the transaction thresholds are as follows:
- PLN 2,500,000 – for a financial transaction;
- PLN 500,000 – for non-financial transactions.
DCT reporting deadlines
With regard to the implementation of transfer pricing obligations for 2022, there is a significant change in the dates compared to previous years:
- preparation of local transfer pricing documentation in electronic form – by the end of the 10th month after the end of the tax year, i.e. as a rule – by October 31, 2023;
- submission of transfer pricing information (TPR) – by the end of the eleventh month after the end of the tax year, i.e. as a rule – by November 30, 2023;
- attaching the group transfer pricing documentation to the local transfer pricing documentation – by the end of the twelfth month after the end of the tax year, i.e. as a rule – by December 31, 2023.
New obligations – transfer prices for 2022
- In the case of documentation for 2022, there will no longer be an obligation to submit a separate statement on the preparation of local transfer pricing documentation and the use of market prices. Currently, the statement is an integral part of the TPR-C, the submission of which is tantamount to submitting the statement.
- Another change concerns the scope of persons authorized to sign transfer pricing information. Pursuant to the new regulations, these are: a natural person who is a related entity, an entity authorized by a foreign entrepreneur who represents him in the territory of the Republic of Poland, the head of the entity (in the case when it is managed by a multi-person body – a person included in such a body, appointed for this purpose) or a proxy who is a lawyer, legal adviser, tax advisor or statutory auditor. It is necessary for a natural person to be authorized to sign declarations and send them electronically UPL-1.
- The deadline for submitting transfer pricing documentation at the request of the authority has changed – currently it is 14 days.
- No need to inform the authorities about the transfer pricing adjustment – until now, this obligation had to be fulfilled in the annual tax return.
- The body to which the transfer pricing documentation is submitted has changed – currently it is the competent head of the tax office (so far – the Head of the National Revenue Administration). Please keep this in mind when submitting your information.
Act of 7 October 2022 amending the Corporate Income Tax Act and certain other acts (Journal of Laws of 2022, item 2180, as amended)
Regulation of the Minister of Finance of August 29, 2022 on information on transfer pricing in the field of personal income tax (Journal of Laws, item 1923)
Regulation of the Minister of Finance of August 29, 2022 on information on transfer pricing in the field of corporate income tax (Journal of Laws, item 1934)
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