On 3 January 2024, Poland’s tax authority published a release related to a notice on the base interest rates and margins for the safe harbor simplification for loan, credit, or bond transactions between related parties in 2024. The safe harbor simplification eases transfer pricing rules for related-party debt by aligning the interest rate with the base rate and margin conditions if specific criteria are met. The notice mentions that the base interest rates will be effective on 1 January 2024 and will vary on the currency of the debt.
The currencies are as follows:
Polish zloty (PLN);
- WIBOR 3M (Warsaw Interbank Offered Rate)
- WIRON 3M Compounding Rate (Warsaw Interest Rate Overnight)
U.S. dollars (USD):
- 90-day average SOFR (Secured Overnight Financing Rate)
- LIBOR USD 3M (London Inter-Bank Offered Rate USD)
- Euro (EUR): EURIBOR 3M (Euro Interbank Offered Rate)
British pounds (GBP):
- SONIA 3M Compound Rate (Sterling Overnight Index Average)
- LIBOR GBP 3M
Swiss francs (CHF)
- SARON 3M Compound Rate (Swiss Average Rate Overnight)
The allowed margins for 1 January 2024 are as follows:
- Borrowers have a maximum margin of 3.1 percentage points.
- Lenders must maintain a minimum margin of 2.2 percentage points.
If the base interest rate falls below 0%, the allowed safe harbor rate equals the allowed margin.
