Author Archive:
Magdalena Dymkowska
The key role of benchmarking in safeguarding a taxpayer
Read more: The key role of benchmarking in safeguarding a taxpayerThe primary purpose of a benchmarking analysis is to establish and verify that the terms and conditions in transactions between related parties correspond to the arm’s length principle. Although only one of the integral elements of transfer pricing documentation, these analyses are crucial for taxpayers to meet their transfer pricing obligations. Unfortunately, taxpayers usually realize…
Universal benchmarking – local and global transfer pricing perspective
Read more: Universal benchmarking – local and global transfer pricing perspectiveInternational groups often prepare global benchmarks, which are used by entities in different jurisdictions for local transfer pricing documentation. This approach ensures consistency in global transfer pricing policies and helps reduce the local costs associated with transfer pricing obligations. But is there a universal benchmarking that guarantees the defensibility of transaction arm’s length conditions in…
Transfer pricing can help grow your business internationally
Read more: Transfer pricing can help grow your business internationallyThe latest edition of Santander Trade Barometer reveals that nearly a third (28%) of UK domestic businesses are planning global expansion within the next three years, marking the highest level in two years. Additionally, 56% of businesses in the US, 39% in Spain, and 38% in Poland are also contemplating cross-border expansion. Entrepreneurs are going…
Use of OECD guidelines in EU jurisprudence
Read more: Use of OECD guidelines in EU jurisprudenceAt the end of last year, the outcome of the Amazon group’s tax dispute was widely reported in the media. The judgment relates to transfer pricing issues and the possibility of invoking the OECD guidelines. Tax benefits EU Competition Commissioner Margrethe Vestager pointed out that Luxembourg granted Amazon illegal tax benefits. As a result, almost…
The Visionaries – Family foundations
Read more: The Visionaries – Family foundationsPolish regulations are considered some of the most challenging. Swift adaptation to these dynamically changing regulations is inherently complex and, as a result, costly. Polish regulations impose numerous obligations on taxpayers, threatening substantial penalties for non-compliance. For instance, in the case of the annual information on transactions with related entities, failure to submit this form…
The EU Transfer Pricing Directive: Harmonizing Regulations
Read more: The EU Transfer Pricing Directive: Harmonizing RegulationsOn 12 September 2023, the European Commission released a proposal for The EU Transfer Pricing Directive (TP Directive), which seeks to guarantee that all Member States implement consistent transfer pricing legislation and procedures for overseeing transfer pricing and resolving instances of double taxation. If unanimously accepted by the EU Council, the TP Directive is set…
Planning, rather than mere compliance, is the essence of transfer pricing
Read more: Planning, rather than mere compliance, is the essence of transfer pricingFor most taxpayers, transfer pricing is associated with numerous and complex formal requirements that must be met within a specified deadline, under the threat of escalating and increasingly severe sanctions. But what if we approached the issue of market conformity of transactions differently? The established pattern Among the majority of taxpayers, we often observe the…
Comparability adjustment – how to make benchmarking analysis more reliable?
Read more: Comparability adjustment – how to make benchmarking analysis more reliable?One of the key matters for preparing a benchmarking analysis is the comparability of underlying data. What if the data are not perfectly comparable? If that is the case, it may be necessary to apply comparability adjustments. When comparability adjustment is a good thing? The comparability adjustment seeks to increase the reliability of a benchmarking…
Group benchmark – should you always use it?
Read more: Group benchmark – should you always use it?Polish taxpayers often receive benchmarking analyses from the group. In many cases, these analyses are ready to be part of the Polish company’s transfer pricing documentation. It might happen, however, that their use can be risky for the taxpayer. A Group benchmark analyses Groups of related parties often prepare benchmarks for multiple entities to use…
Royalty fee should not always be calculated as a percentage of sales revenue
Read more: Royalty fee should not always be calculated as a percentage of sales revenueIn order to correctly determine the remuneration for providing an intangible asset, you need not only an analysis of the legal aspects of the asset. An analysis from the transfer pricing is also required. It is extremely helpful to make the so-called DEMPE analysis provided for in the OECD guidelines. A royalty fee for providing…
Meet The Members Europe – Transfer pricing: the key issues in Poland
Read more: Meet The Members Europe – Transfer pricing: the key issues in PolandKey issues Regulations on transferring income between related parties have existed for a long time in Polish tax law. However, transfer pricing matters have gained importance in Poland relatively recently. Even though Polish transfer pricing regulations are aligned with the OECD Guidelines, they are at the same time highly detailed. Simply relying on the OECD…
When is a transfer pricing adjustment possible from the Polish perspective?
Read more: When is a transfer pricing adjustment possible from the Polish perspective?In the Polish regulations is lack a definition of a transfer pricing adjustment (TP adjustment). However, it can be concluded based on the Clarifications of the Ministry of Finance that the purpose of a TP adjustment is to adjust (correct, amend) a transfer price to the level in line with the arm’s length principle in…