On 29 September 2023, Poland published formal guidance regarding the application of the cost-plus method to ensure accurate valuation of transactions involving related entities for international tax purposes. The purpose of this guide is to provide clarity on the operational aspects of the cost-plus method and enhance tax compliance for taxpayers.
The cost-plus method constitutes one of the five main methods for valuing transactions between related entities. It entails establishing a sales price by applying a profit markup commonly observed in transactions between unrelated entities.