Public consultations have commenced on draft Transfer Pricing Forum Recommendations on the transfer pricing implications of the COVID-19 pandemic for Polish taxpayers (“Recommendations“).
The Recommendations are aligned with OECD Guidance on the transfer pricing implications of the COVID-19 pandemic (see our Newsletter no. 5/2021).
The Recommendations deal with a variety of matters, including:
- decision-making flowcharts that help identify:
- whether it is necessary to update the comparability analysis for the impact of the pandemic,
- the transfer pricing approach to crisis-related government assistance,
- the approach to advance pricing agreements that already exist or are being negotiated;
- extended answers to questions from the decision-making flowcharts, intended as guidance to navigate the flowcharts;
- practical examples, including ones helping to determine:
- if a producer/distributor/service provider should update its comparability analysis in connection with the COVID-19 pandemic,
- if a contract manufacturer should include crisis-related government assistance in calculating its manufacturing fee,
- how to document the impact of the COVID-19 pandemic on the taxpayer’s business.
WTS&SAJA became involved in the consultation process as it urged for:
- tax authorities to withhold their transfer pricing audits for the pandemic years until comparables become available (meaning until 2022 for transfer prices applied in 2020),
- adding selected practical examples of how to apply the Recommendations,
- clarifying some vague language and increasing terminological uniformity of the text.
The Recommendations are available (in Polish) here: https://www.podatki.gov.pl/ceny-transferowe/wyjasnienia/rekomendacje-forum-dot-covid-19-zaproszenie-do-zglaszania-uwag/
We will keep you up-to-date with the progress of the work on the final version of the Recommendations.
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.