Recording of the webinar about transfer pricing regulations is available here: https://www.vintom.com/ebd71f/e420a074d71b8667a5cf163995a685e5

1. New
Transfer Pricing
regulations
October 2015
www.pwc.com

2. PwC
Agenda
2
5. Taxpayer’s statement
4. Local file – current
status vs new obligations
3. Local file -
thresholds
2. Timeframes
1. Scope of the documentation
10. Our recommendations
9. Summary
8. CbCR
7. Master file
6. CIT-TP
New
requirements

3. PwC
Tax havens/
joint venture
agreements
The scope of the transfer pricing requirements
depends on revenue /costs of the taxpayer
3
CbCR
> EUR
750 M
5
Local File
1
> EUR 2 M
CIT-TP
> EUR 10 M
3
Transfer pricing
documentation
requirements
2 Taxpayer’s statement
4
Master File
> EUR 20 M
> EUR 20/50 k

4. PwC
Timeframes
2015 2016 2017 2018Transfer pricing
documentation
requirements:
03.2018
Local File
CbCR
Master File
Taxpayer’s
statement
CIT-TP
4
Submission*Date of commencement
1
2
3
4
5
Required actions
01.01.2016 01.01.2017
5
1
3
2
4
*assuming that fiscal year 2017 = calendar year 2017
and submission of upon the request of the tax
authorities, within 7 days from the notification.
1 4

5. PwC
Local file
Thresholds
5
Documentation thresholds
• Thresholds to be applied depend on revenue / costs of the company
Exeptions:
(i) tax havens (>EUR 20,000)
(ii) joint venture agreements (> EUR 50,000).
• Taxpayer’s revenue / costs > EUR 2M – the local file is required for a
subsequent tax year
The tax authorities may ask
to prepare documentation
for any intercompany
transaction of value below
the thresholds (deadline - 30
days)
50 55 60 65 70 75 80 85 90 95 100 105 110 115 120 125 130 135 140
185
230
275
320
365
410
455
500
-
100
200
300
400
500
600
5
1
3
2
4
Thresholds(EURinthousands)
Taxpayer’s revenue / costs [EUR in millions]

6. PwC
Local file – current status vs new obligations
6
5
1
3
2
4
Selection of the TP method
Benchmarking study
Financial data
Organizational and capital structure
Restructuring
Market analysis
Taxpayer’s description
Taxpayer’s additional documents
Current regulations
Functional analysis
Description of the TP method
Costs, terms of payment
Strategy, expected benefits, other factors
New regulations
 (value)
 (simplified)

















7. PwC
Personal liability
under the Penal
Fiscal Code
Need to supervise
the preparation of
TP documentation
Need to verify the
completeness of TP
documentation
Need to plan
Taxpayer’s statement
7
Taxpayers are obliged to submit a statement confirming that the
transfer pricing documentation was prepared. The statement must be
filed to the tax authorities by the date of filling the annual tax return.
In practice it
means:
5
1
3
2
4

8. PwC
CIT-TP (1/2)
8
An additional transfer pricing report to be submitted
together with the annual tax return.
G.F.E.D.C.
Functional
profile and
industry
Information on
foreign related
entities
Intercompany
transactions….
Identification of
the relations
between
companies
Restructuring
… including:
• Sales/ production/ rent/
leasing / services
• Transactions concerning
assets (including
intangibles)
• Financial transactions
• Financial information
• CCA
5
1
3
2
4

9. PwC
CIT-TP (2/2)
9
…quick glance…
5
1
3
2
4

10. PwC
1 2 3 4 5 6
Company
overview
Group’s
structure
TP Policy Business
overview IP
Group’s
FS
7
Agreements /
APA
Master File
10
Description of the
transfer pricing
policy applied in the
Group
Description of the Group’s
financial standing along
with its consolidated
financial statement
Organizational
structure of the Group
Indication of the related entity
that prepared information on the
Group along with the date of
filing its tax return.
Description of the
Intellectual Property
developed and used by
the Group
Description of the
agreements with the tax
authorities concluded by
the entities from the Group
Group’s business
activity overview
5
1
3
2
4

11. PwC
CbCR (1/2)
11
Country-by-Country Reporting
form will allow to compare the
volume of operations, taxable
income and tax paid across the
countries.
Similar reporting obligations should be
implemented in other countries as well. It will
allow the tax authorities to easily compare
financial data between the countries.
5
1
3
2
4
Domestic
entities…
… parent
companies, not
being a
subsidiary…
…preparing
consolidated
financial
statements…
… having
foreign
subsidiaries
/PEs…
…with
consolidated
revenue
exceeding
EUR 750 M
Who
prepares
CbCR form?

12. PwC 12
5
1
3
2
4
CbCR (2/2)
…quick glance…

13. PwC
Summary of changes
13
Increased workload of the taxpayer as regards the
transfer pricing documentation
The burden of proof transfered onto the taxpayer
5
1
3
2
4
New instruments for assessing the TP risk
available for the tax authorities (CbCR, CIT-TP)
The necessity to reveal significant amount of
information – more visible inconsistences (e.g.
financial data has to be in line with the FS)
• Extended scope of the
Local File
• Additional requirements
(Taxpayer’s statement,
Master File, CIT TP, CbCR)
• Tight deadlines
• Higher threshold defining
related entities (25%
compared to 5%)
• Higher documentation
thresholds

14. PwC
Our recommendations
14
5
1
3
2
4
Analysis of potential risks
under the new TP requirements
(CbCR, CIT-TP)
Possible changes in case of
identified risks
• Assess what is requiredWhat should I do?
• Verify what is available and what is
missing
What have I got?
• Need to aggregate data from various
companies (including foreign
entities)
• Time necessary to prepare and verify
the documentation
• Very first documentation is crucial
When should I do it?
• Verify the documentation, not less
than once a year (benchmarking
studies every 3 years, assuming no
changes of the market conditions).
Should I update it?
Who is responsible? • Define who does what
(persons/companies)
Transfer pricing documentationTP risk analysis

15. Thank you for your
attention!
Sebastian Lebda
Director
Tel.: +48 502 18 4675
Email: sebastian.lebda@pl.pwc.com
Piotr Niewiadomski
Manager
Tel.: +48 519 50 7279
Email: piotr.niewiadomski@pl.pwc.com