Polish tax regulations oblige businesses to determine prices, and other terms and conditions of transactions with dependent entities, so they reflect market prices and conditions. Violating this rule enables tax authorities to assess the market value of revenue and to determine the relevant amount of due tax.

Transfer prices were until recently under little scrutiny from tax authorities. Now they seem to have developed an increasing interest in them.

As a service to our clients, we analyze the prices used in transactions between dependent entities to highlight existing tax risks and the draft the required legal documentation applying the chosen method of calculating transfer prices.

Properly prepared documentation eliminates the risk of tax authorities levying a punitive income tax rate of 50%.