Amendment of regulations on TPR information and transfer pricing, and new sanctions under the Fiscal Penal Code

This article answers the following questions:

• Who may sign the TPR information after the amendments?
• When should the statement on the consistency of the local transfer pricing documentation with the actual state of affairs and the arm’s length nature of prices be submitted?
• What penalty applies in Poland for preparing local transfer pricing documentation in breach of the regulations?

On 31 March 2026, a draft amendment to the Personal Income Tax Act, the Corporate Income Tax Act and the Fiscal Penal Code was published on the website of the Government Legislation Centre. As indicated in our previous post discussing the amendment of Polish transfer pricing regulations, the draft provides, inter alia, for a change to the rules on signing TPR information and for the repeal of the obligation to calculate general indicators in the TPR for micro‑entrepreneurs and small entrepreneurs. Particular attention should also be paid to the proposed amendments to the Fiscal Penal Code, which were not presented in the original version of the draft.

Changes to the signing of TPR information

The draft act introduces a simplification of the currently applicable special rules for signing TPR information, which at present restrict the group of authorised signatories exclusively to specific persons – in particular, a designated member of the management board or professional representatives (such as an advocate, an attorney‑at‑law, a tax adviser or a statutory auditor).

As a result of the planned amendments, TPR information will be signed in accordance with the general rules set out in Division III, Chapter 9a of the Tax Ordinance concerning powers of attorney for signing electronic tax returns. 

This means that following the amendment, TPR information will also be able to be signed by a representative authorised to sign tax returns, holding a UPL‑1 power of attorney granted pursuant to Article 80a of the Tax Ordinance. Consequently, a person authorised to sign electronically submitted tax returns will also be entitled to sign the TPR information, which results from the removal of the statement confirming that the local transfer pricing documentation has been prepared in accordance with the actual state of affairs and that prices comply with the arm’s length principle from the content of the TPR information.

As professional advisers supporting companies in the preparation of transfer pricing documentation, we assess this change very positively. It constitutes a significant facilitation in the submission of TPR‑C information, especially for taxpayers whose management board consists exclusively of individuals residing outside Poland.

TP statement in local transfer pricing documentation

Unfortunately, the amendments introduced by the draft will not be limited solely to simplifications. While the legislator provides for facilitation with respect to the signing and submission of TPR information, certain difficulties may arise – although these may ultimately prove less significant than before, which will in any event be verified in practice – in connection with the transfer of the above‑mentioned statement (which previously formed part of the TPR information) to the local transfer pricing documentation.

The draft assumes a departure from the existing model, under which the obligation to prepare local transfer pricing documentation and the obligation to submit a statement confirming that such documentation is consistent with the actual state of affairs and that prices comply with the arm’s length principle constituted two separate obligations. It is worth noting that, although these documents formally functioned independently, in practice they were inextricably linked. The planned change therefore consists in combining the local transfer pricing documentation with the statement confirming its preparation.

As a result, the statement of consistency will become an integral part of the local transfer pricing documentation. It should be emphasised that from that point onwards, the statement will no longer be submitted by the taxpayer directly to the authority on each occasion, since under Polish regulations governing transfer pricing documentation obligations, local documentation is presented exclusively at the request of the Polish tax authorities.

In line with the amendment, the statement confirming that the local transfer pricing documentation is consistent with the actual state of affairs and that prices comply with the arm’s length principle will be signed by:

• a natural person – in the case of a related entity that is a natural person,
• a person authorised by a foreign entrepreneur to represent that entrepreneur in a branch – in the case of a related entity that is a foreign entrepreneur operating through a branch in the territory of the Republic of Poland,
• the head of the entity within the meaning of Article 3(1)(6) of the Accounting Act or – where the entity is managed by a multi‑member body – a designated member of that body.

Importantly, this statement may not be signed by a representative, except where the representative is an advocate, an attorney‑at‑law, a tax adviser or a statutory auditor.

The statement of consistency will be signed using a qualified electronic signature, a trusted signature or a personal signature. Accordingly, while taxpayers will experience a clear facilitation in the process of submitting TPR‑C information, they may encounter difficulties when signing the statement of consistency itself, which has now become an inseparable element of the local transfer pricing documentation.

Moreover, entrepreneurs should pay particular attention to the consequences of this change, which in practice means that the statement will have to be prepared earlier. The deadline for signing the statement will be aligned with the deadline for preparing the local transfer pricing documentation, i.e. it will fall at the end of the tenth month following the end of the tax year. Previously, this deadline was linked to the deadline for submitting the TPR‑C information and therefore expired only at the end of the eleventh month following the end of the tax year.

No indicators in the TPR form for micro‑ and small entrepreneurs

Undoubtedly, good news is the fact that as part of the simplifications relating to reporting in the TPR information, the draft amendment confirms the repeal of the obligation to calculate general indicators reflecting the financial position of micro‑entrepreneurs and small entrepreneurs. As a result, TPR information submitted by a micro‑entrepreneur or a small entrepreneur – within the meaning of the Entrepreneurs’ Law – may omit data relating to such indicators.

Transfer pricing adjustments also available for domestic transactions

The drafter of the amendment also proposes a clarification of the provisions governing transfer pricing adjustments. This change is intended to dispel doubts concerning the possibility of making adjustments between related entities that have their place of residence, registered office or management board in the territory of the Republic of Poland. 

The previous wording of the provisions governing the preparation of transfer pricing documentation could suggest that such adjustments were not permitted due to the lack of a legal basis for the exchange of tax information with the counterparty’s country. Such an interpretation, however, would lead to conclusions contrary to the legislator’s intent, as it would result in domestic transactions being regarded as riskier than cross‑border transactions and would limit the possibility of making adjustments exclusively to the latter, which in practice concern more risky operations. 

The amendment introduced to the provisions therefore clearly indicates that the relevant condition applies exclusively to entities that do not have their place of residence, registered office or management board in the territory of the Republic of Poland, thereby dispelling previous doubts.

New penalty for entities preparing local documentation in breach of the regulations

There is also unfavourable news. In order to enable Polish tax authorities to enforce more effectively the obligations relating to the preparation of local transfer pricing documentation, the amendment introduces changes to the provisions of the Fiscal Penal Code. 

It is planned to introduce fiscal penal liability for preparing local documentation in breach of Article 23zc of the PIT Act or Article 11q of the CIT Act. As a result, related entities may be subject to penalties, inter alia, for the absence of the statement in the local documentation, pursuant to Article 56c of the Fiscal Penal Code. 

Such a breach will be punishable by a fine of up to 240 daily rates. 

How should the changes in reporting transfer pricing information in Poland be assessed?

In line with the legislator’s intention, the planned changes in the area of transfer pricing are aimed at simplifying reporting obligations and better aligning the regulations with the practical realities of their application. Whether this will indeed be the case remains to be seen. 

From the taxpayers’ perspective, even the simplification of submitting TPR information is somewhat bittersweet, as it will be replaced by an additional obligation to sign a statement that has now become an inseparable element of the local transfer pricing documentation, the deadline for which falls one month earlier than the deadline for submitting the TPR‑C form.

What does merit approval, however, is the fact that the changes concerning TPR information indicated in the amendment, as well as the new regulations relating to local documentation and the statement, will apply to transactions documented for tax years beginning after 31 December 2025. Entrepreneurs therefore still have some time to prepare for the changes, which is a welcome departure from the pace imposed by the Polish legislator in recent years. The newly introduced provisions of the Fiscal Penal Code will enter into force on 1 January 2027.

This means that now is a good moment to start taking action by consulting tax advisers who can assist in adjusting currently applied procedures to the forthcoming changes. Should expert support in the field of transfer pricing be required, we invite you to contact us.