Poland's Supreme Administrative Court has confirmed that companies under the Estonian CIT (lump-sum corporate income tax) regime cannot avoid transfer pricing documentation and reporting obligations, ruling that these requirements remain mandatory unless explicitly excluded by law.
Poland’s Supreme Administrative Court has ruled that companies using the deferred corporate income tax regime must comply with transfer pricing rules, including Local File documentation requirements.
This ruling details a judgment from the Voivodeship Administrative Court in Poznań regarding the application of transfer pricing regulations to companies using “Estonian CIT” (lump-sum corporate income tax).
The judgment issued on 17 February 2026 dismissed an appeal by M. Sp. z o.o., which argued that the absence of explicit instructions in the law implied exemption from transfer pricing documentation obligations and corresponding adjustment rules.
The final ruling upholds a 2023 decision by the Voivodship Administrative Court in Poznan, Poland.
The dispute arose when a taxpayer argued that this tax regime constitutes a complete, independent system that exempts them from standard obligations like preparing transfer pricing documentation (Local File) and submitting TPR-C forms. However, the Director of the National Revenue Information, and subsequently the Court, rejected this view, ruling that the lack of an explicit exclusion means these general requirements remain mandatory.
The tax authority countered that Estonian CIT remains within the CIT Act framework, where general provisions apply unless explicitly excluded. The court sided with the tax authority, ruling that transfer pricing obligations cannot be waived without an explicit legislative exemption. The court emphasised that Article 28m references Article 11c (the arm’s length principle) in defining “hidden profits,” confirming that transfer pricing concepts are integral to determining the Estonian CIT tax base.
The ruling established that companies subject to Estonian CIT must prepare local file documentation and submit transfer pricing information if they meet the statutory thresholds for related-party transactions.
Ultimately, the ruling confirms that Estonian CIT taxpayers are not exempt from transparency and reporting duties regarding their capital ties and associated financial dealings.
