Report: Transfer pricing audits in Poland in 2023

The report on transfer pricing audits consist of tree parts:

1. Statistical part
   dedicated to analysing data on transfer pricing audits carried out by Polish tax offices as well as customs and tax control offices between 2017 and 2023.
   
   To this end, we requested public information from all Regional Revenue Administration Offices (Izba Administracji Skarbowej - IAS) and the Head of the National Revenue Administration (Krajowa Administracja Skarbowa – KAS) in relation to the tax audits carried out in 2023.
   
   
2. Judicial part
   in which we commented on what we consider to be the most interesting court judgments related to transfer pricing issued in 2023 in Poland and abroad.
   
   
3. Individual tax ruling part
   in which we discussed tax rulings related to transfer pricing issued in 2023.

Obligations related to transfer pricing reporting in Poland

The analysed year was marked by some uncertainty, both as regards the manner of completing formal obligations, as well as a risk of transfer pricing disputes with tax authorities.

The deadline for submitting TPR was again modified over the course of the year. Finally, for the tax year beginning after 31 December 2021, taxpayers could submit TPR until 31 January 2024, although initially, the proposed regulation postponing this deadline provided for an even longer deadline.

At the same time, the mere combination of a transfer pricing statement and TPR has caused many taxpayers to reconsider who should sign such a document – including considering the possibility of transferring this obligation to a professional representative.

Key statistical conclusions from the report on transfer pricing audits:

The number of audits was increasing until 2022.

In 2023, the number of audits still remained at the high level as in 2022.

The UCS audits are more burdensome for taxpayers than the US audits, especially the audits carried out by UCS in Warsaw.

As much as 93% of the total amount of understated income uncovered by audits in 2023 was uncovered by the UCS.

The most frequently case law on transfer pricing are concerned on:

• profitability in production models,
• costs of central purchasing functions,
• recharacterising transactions involving licences,
• documentation obligations of CIT taxpayers using the lump sum tax on income (Estonian CIT),
• treatment of financial transactions.
  

Download the report „Transfer pricing audits in Poland”

Read the previous edition of the report