The amendment of the Transfer Pricing Ordinance was published in the Official Journal No. 768/2013 on 3 July 2013, in a decree of Poland’s Ministry of Finance.The decree implements the provisions of the 2010 OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.The amendment became effective from 18 July 2013.
The new transfer pricing guidelines envisage, inter alia, such measures as:
Recommendation for tax inspectors to apply the most appropriate method of assessing profits instead of the current hierarchy of methods that prefers the comparable uncontrolled price method; introduction of instruments for the examination by tax inspectors of business restructuring; this would closely examine the transfers of functions, assets and risks involved in the restructuring as outlined in the OECD Guidelines; providing a catalogue of shareholders’ costs, which should not be regarded as related to services rendered to associated companies and cannot therefore be allocated to other entities in a group; and the elimination of double taxation in relation to the adjustment of profits of associated companies.
