Recently, we have observed intensified activities of the Ministry of Finance in the fight against aggressive tax optimization and, consequently, verification of the market nature of transactions in Poland.
The indicated actions are to consist in increased control in the area of transfer pricing (the value of taxpayers’ estimated income in 2024 was to almost double compared to 2023).
There are undoubtedly some connections between the announcement of intensified inspections in the area of TP and recent media reports on profit siphoning by foreign companies (e.g., Michał Wąsowski’s article
Initiatives announced by the Ministry of Finance, such as the establishment of a working group to develop legislative changes and the announcement of the establishment of a Competence Center in Krakow, which is intended to serve as a breeding ground for “specialists,” are intended to tighten the system. Furthermore, authorities are expected to use data from the Standard Audit File-Tax (JPK) and, in the future, the National System for e-Invoices (KSEF) to select entities for inspection.
What might this mean in practice? There will undoubtedly be a media campaign against intragroup transactions, pointing to their destructive impact on the state budget and their potential to evade and avoid income tax obligations.
In this situation, the focus should be on verifying the completeness of TP’s documentation and its compliance with Polish statutory requirements, along with examining whether our benchmarking analysis is current. Companies will undoubtedly need to assess the risks associated with transactions with related parties.
The recently published draft bill amending the Personal Income Tax Act and certain other acts submitted by President Karol Nawrocki, which is intended to be consistent with the announced reform narrative, indicates several changes that may be introduced in the area of transfer pricing and could enter into force from 2026, including:
- increasing the rate of additional monetary sanction from 10% to 20% of the amount of the established tax liability,
- introducing changes to the Act on the National Revenue Administration regarding the obligation to conduct a cyclical transfer pricing control process in the largest enterprises,
- the obligation for the largest enterprises to publish data on transactions with related entities, which will influence the monitoring of the scale and nature of transactions with related entities,
- publication by the Minister of Finance of reports on public finance sector revenues from income tax and data on conducted transfer pricing audits.
The argument is always the same – strengthening the preventive function of the State and increasing the efficiency and tightening the CIT tax.
Will the planned measures have a real impact on tightening the system and increasing budget revenues? It’s difficult to say. However, the announced tightening of transfer pricing controls and tax-tightening measures in Poland are undoubtedly a clear signal of a tightening of fiscal policy towards taxpayers.
Moore Polska Tax & Legal
Ensure transfer pricing compliance and optimisation in 2025!
Moore Polska Tax & Legal supports its clients every day in all aspects of transfer pricing.
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We help and support in the preparation of:
- Local transfer pricing documentation,
- Benchmarking
- Submitting transfer pricing information (TPR form),
- Preparation of group documentation – Master File,
- Transfer pricing policies,
- Review of agreements/terms and conditions of transactions between related entities for compliance with arm’s length principles.
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