Transfer pricing documentation is mandatory when your company carries out material transactions with related parties or tax haven entities. In 2026 the key issues are correct thresholds, deadlines and using exemptions where possible. This allows you to limit tax risk and personal liability of the management board.
What is transfer pricing and transfer pricing documentation?
Transfer pricing means rules for setting prices in transactions between related parties. Transfer pricing documentation shows the tax authorities that your prices are arm’s length and that you do not shift profits artificially.
How the law defines transfer prices
Transfer prices are the conditions, in particular prices, applied in transactions between related entities. Polish CIT and PIT rules refer to the arm’s length principle, meaning conditions that independent parties would agree. If the tax office finds that your terms differ from market terms, it can increase your taxable income.
Main elements of the transfer pricing system in Poland
- Local transfer pricing documentation (local file) – description of a specific controlled transaction, including functional and comparability analyses.
- Group transfer pricing documentation (master file) – description of the whole group, required only for the largest groups.
- Transfer pricing information TPR-C / TPR-P – electronic report submitted to the Head of the National Revenue Administration.
- APA rulings – advance pricing agreements, less common but very useful for large or strategic transactions.
Where to find official transfer pricing guidance
The Ministry of Finance publishes current guidance, TPR structures and regulations on the portal podatki.gov.pl – transfer pricing. The CIT Act, including transfer pricing rules, is also available in the official acts database ELI / Journal of Laws.
When is your company a related party for transfer pricing purposes?
A related party is not only a company from the same group. Links may result from shareholdings, voting rights, management influence or even family relations and permanent establishments.
Typical capital and organisational relationships
- Direct or indirect holding of at least 25% of shares or voting rights.
- Right to at least 25% of profit or joint property in a company or partnership.
- The same individual effectively controlling key decisions in two entities.
- A parent company and its Polish and foreign subsidiaries within one group.
Personal and family links in transfer pricing
Relationships can also arise from family or personal links. This includes spouses, relatives and in‑laws up to the second degree. If such a person sits on the management or supervisory board of two companies, related party status is usually met.
Permanent establishment and documentation obligations
A permanent establishment, for example a branch in Poland, is treated as a related party to the head office. Dealings between the head office and the permanent establishment are subject to transfer pricing rules. This often concerns management services, IT costs or licence fees charged within the group.
From what thresholds must you prepare local transfer pricing documentation?
You prepare local documentation for homogeneous controlled transactions whose annual value exceeds statutory thresholds. The thresholds depend on the transaction type and apply to 2025 and 2026, unless new rules are introduced.
Documentation thresholds for transactions between related parties
For standard transactions between related parties the following annual net thresholds apply per homogeneous transaction.
| Transaction type | Documentation threshold (annual) | Examples |
|---|---|---|
| Goods transaction | PLN 10,000,000 | Intragroup sale or purchase of goods, components, semi‑finished products. |
| Financial transaction | PLN 10,000,000 | Intragroup loans, credit lines, cash pooling, guarantees. |
| Service transaction | PLN 2,000,000 | Management, accounting, marketing, IT or BPO services in the group. |
| Other transaction | PLN 2,000,000 | Licences, lease, transfer of assets, business restructurings. |
If the total value of a homogeneous transaction exceeds the threshold even by one zloty, the documentation obligation arises unless an exemption applies. That is why you should monitor transaction values during the year, not only at year‑end.
What a homogeneous transaction means in practice
A homogeneous transaction covers a set of supplies of a similar nature, on comparable terms, with the same counterparty. You do not add goods and services to one threshold. You do add all similar services, for example recurring IT services under several agreements.
Does every transaction above the thresholds require transfer pricing documentation?
No. The CIT and PIT Acts provide several exemptions, in particular for certain domestic transactions. On the other hand, even when using an exemption it is wise to keep at least basic internal evidence to support your position.
Exemption for domestic transactions
The most important exemption covers transactions carried out exclusively between Polish tax residents. Conditions include, among others, no subjective CIT exemptions for the parties and no tax loss in the income source concerned. If even one condition is not met, the exemption cannot be applied.
Other common documentation exemptions
- Transactions where links arise only from the state treasury or local government ownership.
- Low value‑adding intragroup services that meet the statutory safe harbour criteria.
- Loans which meet the interest safe harbour conditions, including specific margins and terms.
Assessing exemptions requires analysis of group structure, tax results and contract terms. At Progress Holding we help you check whether you can legally use an exemption and reduce the scope of required documentation.
When is documentation mandatory for tax haven transactions?
Transactions with tax haven entities are always high‑risk. Documentation thresholds are lower than for standard controlled transactions and apply to dealings with both related and unrelated parties.
Thresholds for tax haven transactions
For transactions with entities having seat, management or residence in a state on the official tax haven list lower value limits apply.
| Type of transaction with a tax haven entity | Documentation threshold (annual) | Scope |
|---|---|---|
| Financial transaction | PLN 2,500,000 | Loans, guarantees, deposits and other financial instruments. |
| Non‑financial transaction | PLN 500,000 | Sale of goods or services, licences, agency agreements. |
The documentation obligation may also cover so‑called indirect tax haven transactions, where the beneficial owner of the payment is tax resident in a haven. This requires analysis of payment chains and ownership structure at the counterparty side.
How to check whether your counterparty is from a tax haven
The tax haven list is set in regulations of the Minister of Finance and updated periodically. For safety you should always verify the counterparty’s tax residence and beneficial owner statements. Without such checks defending your position in a dispute becomes much harder.
What are the deadlines for preparing documentation and filing TPR?
Deadlines are crucial because fines for delays or missing documentation are significant. The law links them to the end of the tax year, most often the calendar year.
Deadlines for taxpayers with a calendar year
For the 2025 tax year, when it equals the calendar year, the following deadlines apply for transfer pricing obligations.
| Obligation | Deadline for 2025 | Comments |
|---|---|---|
| Preparation of local transfer pricing documentation | by 31.10.2026 | End of the tenth month after the tax year end. |
| Filing TPR-C / TPR-P transfer pricing information | by 30.11.2026 | Filed electronically with the Head of the National Revenue Administration. |
| Preparation of group documentation (master file) | by 31.12.2026 | For groups above the consolidated revenue threshold. |
If your tax year is not the calendar year, you count the tenth, eleventh and twelfth month after its end. It is important to align the documentation schedule with approval dates of the financial statements, as they are a key attachment to the local file.
What the TPR report contains
The TPR form reflects the main data from your TP documentation, including transaction structure, applied methods and financial indicators. Figures reported in TPR must be consistent with the local file, tax returns and financial statements. Inconsistencies are one of the main triggers for follow‑up questions from the authorities.
Electronic form and signing transfer pricing obligations
Both the local documentation and TPR are prepared and stored in electronic form. The TPR is signed by the managing body, for example the whole management board of a limited company. This means personal liability of board members, including criminal fiscal liability, for the correctness of the data.
How to check step by step whether you must prepare transfer pricing documentation?
It is best to treat transfer pricing as a permanent part of year‑end closing, not a one‑off exercise. A simple checklist helps you quickly assess whether your company has documentation and reporting duties.
Practical checklist for your company
- Identify related parties, both in Poland and abroad, based on capital, management and family links.
- List all transactions with related parties and tax haven entities, grouped by type.
- Calculate the annual value of each homogeneous transaction.
- Compare transaction values with documentation thresholds for each category.
- Check whether domestic or safe harbour exemptions can apply.
- Determine whether you must prepare a local file, master file and TPR report.
- Ensure consistency between TP documentation, tax returns and financial statements.
How Progress Holding can help in practice
At Progress Holding we perform transfer pricing reviews for Polish and international groups. We analyse links, transactions and tax results, then prepare a clear map of obligations: where a local file is required, where TPR is enough and where exemptions can be used. If you prefer to outsource the whole area, we can also provide full accounting services, including transfer pricing aspects.
What are the consequences of missing documentation or errors in TPR?
Missing TP documentation or unreliable TPR reporting is one of the major tax risks for medium and large companies. The consequences affect both the company and members of the management board.
Income adjustment and additional tax liability
If the tax authority finds that your prices are not arm’s length, it may increase your taxable income and assess additional tax with interest. It may also impose an additional tax liability based on the Tax Ordinance rules. Lack of documentation increases the risk that higher penalty rates will be applied.
Criminal fiscal penalties for documentation and TPR
The Fiscal Penal Code provides high fines for missing local documentation or failing to submit TPR. The maximum penalty can reach several hundred daily rates, which at 2025–2026 minimum wage levels may mean millions of zloty. Responsibility usually lies with management board members as persons authorised to represent the company.
Reputational and operational risk
A transfer pricing audit often involves the management board and finance team for many months. Revealed irregularities can make bank financing and investor negotiations more difficult. Solid TP documentation and consistent TPR reduce these risks already at the stage of risk‑based selection of taxpayers for audit.
How does it look in practice? Progress Holding experience
From the Progress Holding perspective transfer pricing is primarily about risk management, not only formal compliance. Based on projects for clients from different industries we see recurring patterns of errors and good practices that significantly reduce dispute risk.
Most common errors we see in new projects
- No link between TP documentation and actual contracts and operating processes in the company.
- Inconsistent figures: different transaction values in TPR, in the local file and in the accounts.
- Ignoring domestic exemptions and preparing unnecessary documentation.
- Outdated benchmarks and comparability analyses, unchanged for years despite business changes.
- Preparing documentation only after a tax office request, which increases stress and costs.
How we work with Progress Holding clients
We usually start with a short TP audit, during which we identify related entities, transactions and risk areas. Then we set priorities: which transactions must have documentation, where an update is enough and where exemptions can be used. We also prepare a work schedule aligned with your reporting deadlines and year‑end closing.
If you run a business in Poland as a foreigner, we help you integrate transfer pricing with your overall business model. We advise on legal form, company registration, ongoing accounting and settlements with foreign related parties so that the whole structure is consistent tax‑wise and business‑wise.
Frequently asked questions
Does a small company with limited intragroup sales need transfer pricing documentation?
If the values of transactions with related parties do not exceed the PLN 2,000,000 or PLN 10,000,000 thresholds, a local file is usually not required. You must still verify whether there are tax haven transactions or special events, such as restructurings, which may trigger extra obligations.
Are signed contracts enough, or do I need a separate TP documentation file?
Contracts alone do not replace TP documentation. The local file must include a functional analysis, risk and asset review and justification of arm’s length conditions. Contracts are important evidence but do not meet all formal requirements of transfer pricing regulations.
Do I need to file TPR if I use the domestic transactions exemption?
Yes. The TPR filing obligation is separate from the obligation to prepare a local file. You must file TPR even if the transaction is exempt from documentation, provided it exceeds the reporting threshold.
What if I realise after the deadline that I should have TP documentation?
You should prepare the missing documentation as soon as possible and consider correcting your TPR or preparing explanations. The earlier you close the gap, the better your chances of limiting penalties. In such cases Progress Holding can help prepare documentation and a communication strategy for the tax office.
Is documentation prepared by the foreign head office enough for the Polish tax authorities?
Group‑level documentation from head office is helpful but rarely sufficient. Polish authorities expect a local file that meets Polish rules and a TPR report in the national logical structure. In most groups you must adapt head office documents to Polish law and accounting data.
If you are unsure whether your company must prepare transfer pricing documentation or TPR in 2026, do not postpone the topic. Need professional support? Contact us at Progress Holding at +48 603 232 418 or office@progressholding.pl.
