Upcoming amendment to Polish transfer pricing regulations

This article addresses the following matters:

• What changes to transfer pricing reporting does the draft act amending the Polish Personal Income Tax Act and the Corporate Income Tax Act provide for?
• What practical challenges may businesses face in connection with the new regulations?

The Polish Ministry of Finance and Economy has prepared a draft amendment to the Personal Income Tax (PIT) and Corporate Income Tax (CIT) Acts, scheduled for adoption by the Council of Ministers no later than the second quarter of 2026. The draft provides, among other things, for the possibility of signing the TPR form by a broader group of authorised representatives than before and for the abolition of the obligation for micro and small businesses to disclose financial ratios. What should entities engaging in transactions with related entities pay particular attention to?

What changes in transfer pricing await taxpayers in 2026?

The draft amendment to the Polish PIT and CIT Acts – draft no. UDER107 (hereinafter: the Draft) – published in the Legislative Work Schedule, represents another step towards the announced deregulation of tax obligations. The proposed measures are intended to significantly slim down administrative procedures, simplify formalities and streamline the operations of tax authorities.

This initiative is crucial for transfer pricing compliance, as it focuses on issues that for years have posed challenges for taxpayers. These include overly extensive formal requirements and the complex procedure for signing and submitting TPR form – particularly problematic when a taxpayer's management board includes members who are not Polish.

Simplification in TPR

Under the current legal framework, the TPR form may only be signed by the head of the entity (typically a member of the management board) or by professional proxies:

• attorneys-at-law,
• legal counsels,
• tax advisors,
• statutory auditors.

The draft amendment aims to liberalise these rules by allowing the TPR form to be signed under the terms of the Tax Ordinance, which would also enable the form to be submitted by other individuals acting as proxies (including employees of the entity). The amendment also eliminates the requirement for micro and small businesses to disclose financial ratios reflecting their economic situation in TPR form.

Transfer pricing adjustments – fewer doubts?

The draft also clarifies the provisions regarding transfer pricing adjustments (so-called compensatory adjustments) made between domestic entities. The proposed changes are intended to eliminate interpretational uncertainties regarding the admissibility of making such adjustments between entities seated in Poland.

Integration of local transfer pricing documentation with the statement of its preparation

The planned changes also envisage a departure from the current model, in which local transfer pricing documentation and the statement confirming its preparation constituted two separate obligations. Although formally independent, in practice they were inextricably linked. The new approach will ultimately combine local transfer pricing documentation with the statement of its preparation.

The above change in the scope of the local file is framed by the legislator as a step towards simplifying obligations, but in practice it raises a number of questions to which the draft does not yet provide clear answers.

Will the integration of both obligations actually reduce formalities, or will it lead to the creation of a new, more complex mechanism? What will such "integrated" documentation look like in practice? Will the statement become an integral part of the documentation, requiring a signature under the entire document, or will it remain merely a formal accompanying element?

Moreover, introducing a digital signature may further complicate matters when making corrections or additions – there's a risk that each change will require the entire document to be re-signed, and the signature date could indicate a missed deadline. As a result, instead of simplifying the process, this mechanism may in practice prove more complex and burdensome than the current one.

Summary of planned changes to transfer pricing compliance obligations in Poland

The proposed amendments in transfer pricing are intended to simplify documentation obligations for related entities and clarify selected regulations. The planned reform is quite extensive and includes, in particular:

• liberalisation of the rules for signing the TPR form,
• integration of the statement of the preparation of documentation and arm’s-length nature of transactions with the local transfer pricing documentation,
• abolition of the obligation for micro and small businesses to disclose financial ratios in the TPR form reflecting their financial situation,
• clarification of the provisions governing transfer pricing adjustments.

In its current version, the draft does not yet determine whether the new regulations will apply to tax obligations for 2025. At this stage, these are general concepts, and the completion of the legislative process and submission of the draft for adoption by the Council of Ministers is expected in the first half of 2026.

However, it cannot be ruled out that the final shape of the regulations will also cover 2025, which, from the taxpayers’ perspective, justifies taking appropriate preparatory measures in advance.