Transfer Pricing

Specifics of transfer pricing

Transfer Pricing is one of the most important legal and tax areas to pay attention to in transactions between related parties. According to the basic principle - transfer prices, i.e. the terms of the transaction, should be determined according to the arm's length principle, i.e. at the level that unrelated parties would determine between themselves.

That is why it is so important to determine the terms of the transaction on an arm's length basis already at the planning stage. Especially since it may become necessary for some of them to comply with statutory transfer pricing obligations. And the tightening regulations and economic changes certainly do not make this task easier for taxpayers.

Both our observations and statistics published by the Ministry of Finance show that the interest of tax authorities in this subject is steadily growing. All the more so since the tax authorities have effective tools for typing entities for inspections and verifying the prices applied on the market.

It should be borne in mind that possible inspections may involve a significant time commitment on the part of the taxpayers, and in the case of irregularities shown, sanctions may also be imposed on them (both on the company and the members of the management board).

What can we help you with?

Aider Polska (MDDP Outsourcing) offers:

initial verification of documentation obligations including, among others, identification of transactions subject to these obligations,
Proper settlement of flows with related parties from an accounting and bookkeeping perspective,
ensuring that these flows are properly reported in the entity's financial statements.

In turn, with the support of the entire MDDP group, we efficiently guide our clients through the process from A (understood as Analysis, determination of the proper model of cooperation) to Z (i.e. Approval, Submission, Reporting of all necessary documents, such as agreements, documentation, valuations, benchmarks or TPR forms submitted to the US, among others).

Comprehensive offer of Aider Polska

We support clients at every stage, from setting the terms and conditions and preparing the agreement, to proper reporting, and then meeting transfer pricing obligations (preparation of documentation, comparative analysis, TPR form), if we identify the need;
We enable faster and safer transfer of data and direct exchange of information, resulting in significant savings in time and direct involvement of people from the company;
We offer a comprehensive assessment of the introduced solutions and possible risks not only from an accounting and bookkeeping perspective, but also from a tax perspective;
We identify non-obvious flows that, from a transfer pricing perspective, may be subject to tax control.

On tax issues related to transfer pricing, we encourage you to contact MDDP experts .