This is to let you know of a recent change in Article 11(4) of the Corporate Income Tax Act ("CITA"), which defines which entities are considered to be related parties. The new law is concerned with relations which arise due to the fact that shares in the controlled taxpayer are held by the Polish State Treasury or a local Polish government authority (or union of such local authorities).

After the changes to Article 11(4) and Article 9a(1)(1) CITA, transfer pricing documentation need not be prepared for:

  • taxpayer's transactions with parties related to it via shares held by the State Treasury (where the State Treasury holds shares both in the taxpayer and in another Polish-based entity);
  • taxpayer's transactions with the State Treasury (where the State Treasury holds shares in the taxpayer).

Previously, the issue whether or not these transactions had to be documented gave rise to ample controversy among taxpayers.

Note that the new Article 11(4) applies to income earned as of 1 January 2017, which means it should be taken into account when defining the range of transactions for the purpose of 2017 transfer pricing documentation requirements.

If this issue pertains to your business and you are interested in our assistance, please contact your WTS&SAJA consultant or our office.


Doradztwo Podatkowe WTS&SAJA Sp. z o.o. 
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ul. Roosevelta 22 
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tel. (+48) 61 643 45 50 
fax. (+48) 61 643 45 51

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This Newsletter 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.

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