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Are you unsure whether the transfer pricing documentation you have meets all applicable requirements? To properly prepare for potential discussions with tax authorities conducting transfer pricing audits, it is worth seeking support from RSM Poland experts, who will verify previously prepared files and identify the most important areas requiring supplementation or correction.
If you already have transfer pricing documentation, it is worth reviewing its key elements, especially if foreign consultants were involved in its preparation. Polish regulations impose additional obligations on local related entities that are not provided for under the OECD Transfer Pricing Guidelines. This means that documents prepared for a Polish entity by a foreign adviser serving its parent company or group may not meet all local requirements.
Why entrust the transfer pricing documentation verification process to RSM Poland advisers?
By engaging the RSM Poland team, you do not need to worry about a lengthy and time-consuming process. As part of a global network providing comprehensive transfer pricing services, we are able not only to prepare documentation from scratch but also to quickly assess existing documentation for any shortcomings and propose appropriate solutions that will help build a reliable basis for defending the entity’s position in the event of disputes with the tax authorities.
Importantly, our extensive experience of working – in both Polish and English – with internationally operating organisations carrying out numerous transactions between related entities means that we frequently encounter documentation which, despite meeting international requirements, is not fully aligned with local guidelines. We therefore know where discrepancies between the OECD standard and Polish regulations most often occur and what actions should be taken to address them efficiently and with minimal effort.
Our approach is practical and focused on achieving specific outcomes. The transfer pricing documentation verification service is not as comprehensive and time-consuming as a transfer pricing audit, during which we analyse every detail and all supporting documents – instead, we focus solely on the structure of the documentation and any material deficiencies. As part of our work, we:
- verify the compliance of existing documentation with Polish regulations – we review transfer pricing documentation prepared by a group or foreign advisers (including documentation prepared exclusively in English) to determine whether it meets local requirements and, following a prompt review of its content, identify any missing elements;
- help implement changes necessary to align transfer pricing documentation with domestic requirements – by proposing appropriate provisions and identifying issues that require clarification, we indicate the actions that need to be taken, helping to minimise the risk that tax authorities will challenge the compliance of transfer pricing documentation with Polish regulations during an audit or consider it unreliable (thereby also minimising the risk of sanctions being imposed on the entity);
- focus on speed and tangible results – verification of existing transfer pricing documentation does not require a full analysis of the data, so – unlike a comprehensive audit or preparing everything from scratch – the process takes less time, and most of the recommended amendments can be implemented independently by the entity using the service;
- facilitate completion of the entire process, if required, by preparing or reviewing the TPR – we do not limit ourselves solely to verifying transfer pricing documentation. If the entity requires support at the stage of filing its transfer pricing information, we also prepare or review the TPR form, helping to ensure that all transfer pricing obligations, including reporting obligations, are fulfilled efficiently.
Transfer pricing documentation verification step by step
1. Submission of completed documentation for review
When commencing the engagement, RSM Poland tax advisers familiarise themselves with the transfer pricing documentation provided by the related entity and – without analysing the source documents used to prepare it – verify the content of the documentation against the requirements set out in Polish regulations. Importantly, it does not matter whether the client prepared the documentation independently or received it from the group or an external adviser, as our consultants have extensive experience in working with documentation prepared in both Polish and English.
2. Analysis of the material and identification of errors or omissions
At the next stage, our team identifies and briefly discusses discrepancies between the documentation under review and the transfer pricing requirements currently in force in Poland. To facilitate implementation of amendments, we also add relevant comments and, in some cases, even suggest supplementing the files with ready-made wording used by our experts in the documentation they prepare, which may be valuable in providing additional protection for the entity in the event of an audit.
3. Implementation of amendments and preparation of the TPR
Following completion of the documentation review, the RSM team provides comments and recommendations enabling the organisation to implement the necessary amendments independently. As a result, our clients retain full control over the document and can proceed at their own pace, while continuing to seek our support if additional questions arise or consultation is required. If the scope of the engagement also includes the preparation or review of a previously prepared TPR form, we remain available in the event of any technical issues associated with its submission to the tax office.
Frequently asked questions: what should you know about the specific nature of Polish documentation obligations?
The original source documents required for the preparation of transfer pricing documentation do not have to be translated. However, documents submitted to Polish tax authorities must meet certain requirements:
- local transfer pricing documentation (local file) – although Polish legislation does not contain explicit provisions specifying the language in which local documentation must be prepared, it should be prepared in Polish,
- group transfer pricing documentation (master file) – may be prepared in English, but if requested by the authority, the entity is obliged to provide a Polish translation,
- transfer pricing information – is submitted on a dedicated TPR form prepared in Polish.
To protect taxpayers from prolonged tax audits, it is therefore advisable to prepare documentation entirely in Polish.
No. Polish regulations require related entities to provide, among other things, more detailed quantitative data than those required under OECD standards. Most of these data must then also be submitted to the tax authorities through an additional reporting obligation, namely the filing of the TPR form.
Verification of transfer pricing documentation is less detailed and usually does not include, among other things, comparing the data presented in the documentation with information contained in source documents. This means that fewer materials are subject to review and the process is completed more quickly. Experts conducting the documentation review focus primarily on ensuring that the transfer pricing documentation contains all elements required under Polish law. However, where necessary and at the client’s request, they may also perform additional procedures, such as verifying whether the information disclosed in the transfer pricing documentation is consistent with the Polish entity’s financial statements.
It depends. At the client’s request, verification of completed transfer pricing documentation may be combined with the preparation or review of the TPR form, ensuring that the entire compliance process is completed efficiently and without unnecessary delays.
Transfer pricing documentation prepared by the group will not always satisfy the Polish tax authorities
Many Polish entities involved in transactions between related parties receive completed documentation from their group – usually in English and prepared in accordance with OECD Guidelines. While this may appear sufficient, it unfortunately does not usually guarantee compliance with Polish regulations. Missing elements, incorrect transaction values or a presentation of relationships between related entities that does not reflect reality may result in the documentation being considered unreliable.
To meet the needs of international organisations, we focus on saving the time and effort that would otherwise be required to prepare documentation from scratch. Starting from the material already available, we review it against Polish requirements and identify specific amendments that should be introduced. This provides a faster and more effective route to increased tax security.
Therefore, if you have your own documentation or documentation prepared by your group and are unsure whether it complies with Polish regulations, contact our transfer pricing experts, who will help you verify it – not only quickly, but above all professionally.
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