Transfer pricing documentation for all transactions – not only for those over the threshold

15 March 2018

If your sales exceed EUR 100,000, you must prepare a transfer pricing documentation of all transactions concluded in a tax year with the given associated enterprise and not only of the transactions over the statutory threshold.

An opposite interpretation of this obligation would make it impossible to fully asses economic transactions with the same associated enterprise and would contravene Article 9a(2) of the Corporate Income Tax Act, held the Provincial Administrative Court in Białystok in its judgement of 12 November 2015, file no. I SA/Bk 412/15 (legal).

We, therefore, recommend reviewing your transaction history with associated enterprises and if you exceed the statutory threshold – checking whether your documentation is complete and covers all transactions with your associated enterprises.