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 your WTS&SAJA consultant.

Doradztwo Podatkowe WTS&SAJA Sp. z o.o.

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ul. Roosevelta 22

60-829 Poznań

tel. (+48) 61 643 45 50

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Al. Jerozolimskie 81

02-001 Warszawa

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.