– In recent years, the importance of transfer pricing has grown significantly as an important and reasonably separate part of each country’s tax policy and tax administration. We are launching a project according to which, in cooperation with the OECD and the European Commission, we will lay the foundations for further transfer pricing reform in Poland, in particular strengthening the field of reporting and analysis – said Deputy Finance Minister Jan Sarnovsky.

He added that in the course of working on the project, representatives of the Ministry of Finance will lead a team consisting of representatives of countries that have for years owned the leader’s yellow jersey in terms of modern regulations and the effectiveness of reports and analyzes. . – Deputy Minister Sarnovsky explained that representatives of Germany, the Netherlands, Sweden, Great Britain and the United States will support us with their knowledge.

Better organization to increase competitiveness

The work will result in the preparation of joint recommendations on possible changes to Polish tax regulations. Their goal is Increasing the competitiveness of the systems in force in Poland and increasing the effectiveness of electronic reporting (TPR).

Read: The Ministry of Finance clarifies the rules for filling out the temporary protection system and documenting transfer prices >>

– The participation of representatives of several countries in the project, the beneficiary of the Polish Ministry of Finance, demonstrates a full understanding of the idea of ​​sharing good practices and joint efforts to build a tight and taxpayer-friendly tax system in the TP region of Poland, in the European Union and in the world – adds Deputy Minister Sarnowski.

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start a project

The inaugural meeting with representatives of the European Commission, OECD and partner tax administrations was opened by Deputy Finance Minister Jan Sarnovsky.

The project “Strengthening the legal system of transfer pricing against tax evasion behaviour”, implemented entirely with EU funds (the so-called Technical Support Tool, TSI), assumes an analysis and evaluation of the legal regulations in force in Poland in the field of transfer pricing, including electronic reporting obligations under TPS information – notified to the Ministry of Finance.

An important component of the project is the exchange of good practices in documentation obligations, electronic reporting and analysis with partner countries. As part of this initiative, Poland has established cooperation with five countries recognized as leaders in the field of competitive transfer pricing regulations. Poland’s partners in the implementation of the project are Great Britain, Germany, Sweden, the Kingdom of the Netherlands and the United States. Experts from these countries will share their expertise and technological solutions with representatives of the Ministry of Finance.

The project also provides training for Ministry of Finance staff. Transfer pricing is a very important area in the dynamically changing tax and legal environment, particularly in the international context of work on international income tax tightening packages in the OECD Forum, such as BEPS 1.0 and BEPS 2.0.

The European Commission has positively evaluated the participation of the Ministry of Finance in the development of the legislative and analytical framework in the field of technical protection, has decided to provide support to continue to strive for the development of a transparent and robust transfer pricing policy, and informs the Ministry accordingly. finance.

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The deal has been negotiated for a long time and is seen as a success. The positive opinion of the European Commission, the willingness to cooperate and the willingness to engage in a joint project by the Organization for Economic Cooperation and Development and experts from Europe and the world are important evidence of the confidence that Poland and the Ministry of Finance have among foreign partners, informs the Ministry of Finance.

The project will run for approximately two years. Throughout the duration of the project, meetings will be organized summarizing the various stages of work, during which their implications will be presented.

It can be the basis, and analytical material for further work, to develop and update regulations, improve reporting or deal, for example, with the problem of profit ratios to the plant.

What is a technical support tool?

The Technical Support Instrument (TSI) will be a continuation of the Structural Reform Support Program. It is managed by the European Commission and its purpose is, inter alia, to support the efforts of Member States to strengthen their institutional and administrative capacity and the effective implementation of reforms, including through the exchange of good practices. The decision to grant support is made by the European Commission after analyzing the requests from interested Member States. The application from Poland was prepared by the Transfer Pricing and Valuation Department of the Ministry of Finance in 2020. It received a positive opinion from the European Commission. On November 19, 2021, the work of the working group was officially launched.

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– We have excellent specialists in this field in the country, but the cooperation creates opportunities for the exchange of practical experiences, especially in the field of digitization of reports. Internationalization of transfer pricing is highly desirable and beneficial due to the fact that this is a matter primarily of international transfers, and this may contribute to the coherence of applicable guidelines, applicable regulations and a pragmatic approach to solving complex cross-border problems – assesses Hanna Szarpak, a tax consultant who specializes in, among other things Other on Transfer Pricing, TCA Advisers.