Transfer pricing documentation and reporting

Most transfer pricing problems begin with errors in documentation: an incomplete benchmarking analysis, incorrectly identified homogeneous transactions, or an exceeded documentation threshold.

We prepare comprehensive transfer pricing documentation in full compliance with Polish regulations and the OECD Guidelines:

• We prepare Local File and Master File documentation
• We develop benchmarking studies using professional databases and rigorous methodology
• We complete TPR-C forms and assist with their submission to tax offices
• We prepare documentation confirming that the conditions for applying safe harbour simplifications have been met

Transfer pricing risk identification and mitigation

We identify risk before the tax authorities do

Tax authorities are becoming increasingly effective at identifying transactions that are inconsistent with the arm’s length principle. Reclassification of financial transactions, challenges to distributor margins, and recharacterization of transactions involving intangibles are scenarios faced even by well-managed corporate groups.

That is why we help identify and eliminate risks before they escalate into a dispute with the authorities:

• We conduct transfer pricing audits – analysing transactions, documentation, and benchmarking studies from a risk perspective
• We assess the risk of transaction recharacterization – across the financial, distribution, and intangibles areas
• We verify the accuracy of the functional profiles of the parties to a transaction (FAR analysis)
• We assess the arm’s length nature of transaction terms – including gratuitous guarantees, intra-group loans, and profitability adjustments
• We design and implement transfer pricing compliance procedures
• We provide ongoing transfer pricing risk management support – as part of a long-term cooperation framework

For corporate groups seeking to ensure long-term security, we also handle:

• Advance Pricing Agreements (APAs) – with the Polish tax authority or on a bilateral basis
• Mutual Agreement Procedure (MAP) – in the event of cross-border disputes

Transfer pricing policy and transaction planning

A transfer pricing policy is a strategic tool that brings order to intra-group settlements, mitigates risk, and gives management the confidence that the group’s activities are fully consistent with the law. It is an indispensable element of effective governance.

That is why we develop and implement transfer pricing policies tailored to each group’s operating model:

• We analyse the functional profiles of entities within the group and the allocation of functions, assets, and risks
• We select transfer pricing methods appropriate to individual transactions
• We design transfer pricing adjustment mechanisms – taking into account the VAT implications
• We support DEMPE analysis for transactions involving intangibles
• We design settlement structures for new intra-group transactions – before the relevant contracts have been entered into

Transfer pricing controls and disputes

When the authorities challenge transaction terms, we stand on your side

A transfer pricing inspection is one of the more demanding types of tax proceedings. Tax authorities have their own benchmarking analyses, databases, and the power to reassess income. Effective defence therefore requires a precise strategy – both legal and economic.

That is why we represent clients at every stage of a dispute:

• We provide support during tax and customs-fiscal inspections – from the first summons to the final inspection report
• We prepare responses to authorities’ objections, always grounded in rigorous legal and economic analysis
• We represent clients in tax proceedings before tax authorities
• We conduct litigation before administrative courts (Provincial Administrative Courts – WSA – and the Supreme Administrative Court – NSA)
• We prepare economic and business analyses for the purposes of court and arbitration proceedings
• We defend clients in fiscal criminal proceedings relating to transfer pricing

We are fully up to date with the current case law of the administrative courts and the practice of tax authorities in the transfer pricing area. We know which arguments work. And we apply them effectively.

Protecting the stability of your business in a complex regulatory environment

We support corporate groups and businesses that recognise transfer pricing as an area of genuine tax and financial risk.

We operate on a prevention-based model: we identify risks before an inspection arises, build robust documentation, and design secure transaction structures. In contentious situations, we implement effective defence strategies.

Do you have any questions about documentation, inspections, or transfer pricing policy? Speak to our team – and find out how we can strengthen your company’s tax security.