Polish Transfer Pricing

The original transfer pricing guidelines which were issued in 1996 by the Minister of Finance on the basis of the OECD 1995 report, have now been incorporated into the Polish Corporate Income Tax Act.

In general, prices et between parties must be set on an arm's length basis. If they have not been, the Authorities have the power to adjust the taxable income of the parties for Corporate Income Tax purposes. In general, any sale which is undervalued is treated as a donation to the purchaser. For the seller, additional income may be assessed. A similar power exists in respect of VAT.

The following methods have been provided for assessing transfer prices:

1. Comparison of uncontrolled price