Transfer prices are the prices which related entities use in transactions between them. These relations may take different forms – from familial, personal, to capital.
This category also includes prices in transactions with entities located in countries with harmful tax competition (the so-called “tax havens”).
We assist with
- Advising on the application of transfer pricing,
- preparation of documentation for tax inspection purposes
Transfer pricing and tax:
- The right use of transfer prices mechanisms allows significant tax savings.
- A practical example of the use of transfer prices are all kinds of services provided, e.g. by the owners of the legal person on behalf of that entity or the movement of goods between the two agencies of the same enterprise.
- It is a subject to tax authorities control which obliges to keep transfer prices documentation.
- Details of the transaction limits are specified in the relevant provisions of the PIT Act and CIT Act.
- Lack in preparing such documentation, or failure to provide it within 7 days from the start of fiscal control may result in the imposing financial sanctions. Such sanctions take form of tax rate at the rate of 50% tax in the relation between the income declared by the entrepreneur and income estimated by the tax authorities.
Did you decide to open your company in Poland?
Do you represent a large corporation, mid-sized business or its your first business step here?
For each of the above situations, several issues are very important in the entire process of forming a business in Poland.
Is there anything we can help you with?
Should you wish to discuss your company formation issues further, please do not hesitate to contact us. CGO Legal is an experienced legal partner with whom the achievement of your goals will be faster, safer and more comfortable.