On 19 June 2019, Poland Ministry of Finance published an explanatory note addressing transfer pricing comparability analyses. Accordingly, database for comparables could be selected locally, regionally, or even globally by considering comparability factors, including proper identification of a suitable market.
The Ministry emphasizes that the selection of appropriate transfer pricing benchmarks requires an individualized approach to comparability analysis, taking into account the quantity and quality of the benchmarks. The Ministry also confirms that the use of secret comparative data in Poland is not permitted. The ministry points out that data from companies with persistent losses or extraordinary profitability are not comparable with entities that have a limited risk profile.
In addition to the selection of comparative data, the guidance also includes instructions for performing the analysis in the interquartile range when the comparables has been selected. If benchmarks are less comparable, it is possible to use the interquartile range. However, if significant deviations are found in the range, the median or arithmetic average or weighted average should be vital. It is not specified which of them should be prioritized.
This explanatory note is applicable to comparability analyses for transactions between related parties conducted until the end of 2018.
