This is to let you know that the Finance Ministry has published practical guidance on the application of transfer pricing regulations concerning safe harbour provisions for loans.

According to this guidance, where the reference rate applied in interest calculations is negative, the interest rate should be the sum of the following components:

  • the base rate for the currency of the loan,
  • the absolute value of the above base rate,
  • the margin (currently it is 2 pp.).

Thus, if the base rate is zero or less, the safe harbour rate for the loan is 2 pp.

See below for the full text of the guidance (in Polish):

https://www.podatki.gov.pl/ceny-transferowe/wyjasnienia/safe-harbour-dla-pozyczek-metodyka-kalkulacji-przy-ujemnej-stopie-referencyjnej/

If this issue pertains to your business and you are interested in our assistance, please contact us.

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