MDR legislation has been amended. How does that affect intercompany transactions and TP?
On 19 June 2026, the President of Poland signed legislation amending the Tax Code and introducing significant changes to the Mandatory Disclosure Rules (MDR) regime. The new provisions will enter into force on 1 October 2026.
The reform represents a substantial simplification of MDR compliance obligations for many corporations. The Polish MDR regulation will become narrower in scope and more closely aligned with the EU DAC6 framework. From a transfer pricing perspective, one of the most notable changes is that the definition of hard-to-value intangibles (HTVIs) will be revised to match the transfer pricing regulations.
Key changes
Below you will find the most important changes:
- the reporting obligation will apply only to cross-border arrangements, with domestic ones generally falling out of scope,
- the list of hallmarks will be narrowed down to better reflect the DAC6 framework;
- the definition of hard-to-value intangibles will be aligned with TP regulations;
- the formal duty to maintain an MDR procedure will be abolished;
- MDR-3 reporting will be simplified, including by allowing the filing to be signed via an agent;
- MDR matters will not be eligible for private tax rulings, while the existing strict penalty regime will continue to apply.
Why does this matter for transfer pricing?
The previous inconsistency among MDR and TP definitions gave rise to issues with the treatment of intangible transactions. In practice, this could result in taxpayers adopting a conservative approach and reporting transactions “just in case”, even where the transactions were commercially justified and had already been analysed in transfer pricing documentation.
Under the amended rules, the assessment of transactions involving hard-to-value intangibles should become more predictable. This is particularly relevant for:
- IP transfers or licensing,
- know-how transactions,
- intragroup reorganisations, especially with a cross-border dimension,
- changes to group-wide operating models, functions or risk allocation,
- transactions based on financial projections.
However, the reform does not eliminate MDR risks. Cross-border transactions will still need to be assessed against statutory hallmarks, the main benefit test and the parties’ obligations.
Business implications
For many corporations the new law may mean less MDR reporting and improved consistency between MDR assessments and TP compliance.
However, because individual tax rulings will not be available for MDR matters, greater emphasis will need to be placed on the quality of internal analysis. Crucially, any MDR position will have to be justified and documented, whether the decision will be to report or not to report.
For all practical purposes, MDR reviews should be integrated with TP processes, especially those relating to TP documentation, comparability analysis and business restructuring projects.
How to prepare?
We advise taking the following steps before 1 October 2026:
- Map your transactions by identifying those cross-border intercompany transactions that may require an MDR review.
- Review your intangibles by looking into IP, know-how and licensing transactions to identify HTVIs.
- Integrate your processes by combining MDR process with TP documentation procedures.
- Conduct a retrospective review by checking if there any outstanding legacy MDR obligations in your group.
If you would like to revise your MDR and TP compliance processes in light of the changes or assess their impact on your intercompany transactions, feel free to contact us.
This blog post is provided for general information purposes to keep you up-to-date with changes in tax law, tax rulings by authorities, case law of courts and interesting commentaries. Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions resulting from reliance on such information.