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What’s Wrong with Poland’s Transfer Pricing Legislation?

January 20, 2022

Poland’s Transfer Pricing Legislation

While the world has been looking outward, focused on a global tax plan, Poland’s Ministry of Finance has been looking in—evaluating its transfer pricing legislation through a project known as “Strengthening the Transfer Pricing Legal System Against Tax Evasive Behavior.”

The program, which is slated to take two years and includes weigh-in from OECD experts, members of the European Commission, and tax authorities from the UK, Germany, the Netherlands, Sweden, and the U.S., will examine Poland’s transfer pricing laws and propose changes to keep legislation on the tax-avoidance-prevention track.

While legislative reforms aren’t necessarily known to be in the best interest of multinational companies, in this case, they could be. Poland’s more recently adopted transfer pricing legislation has been criticized for increasing compliance burdens and causing double taxation for many MNEs, and this group’s deep dive into Poland’s transfer pricing laws could potentially change all that.

Project Overview

Right now, the plan is to look at what works well in other countries, examine Poland’s transfer pricing risk assessment reporting, and workshop to analyze real-life (though for now, unnamed) transfer pricing issues.

So, if Poland is going to such efforts to ensure its transfer pricing legislation prevents tax avoidance and evasion, don’t you think it’s going to expect multinational companies to return the favor?