Transfer pricing for SMBs — when the rules apply to you too

Who counts as a "related party"

A relationship exists when:

• one company holds at least 25% of shares in another (directly or indirectly),
• the same individual holds shares in both companies,
• there is management control — the same board member in both firms.

In short: if you run two companies and invoice between them, you are a related party.

Mandatory documentation thresholds

A Local File is required when you cross a threshold. Master File — when consolidated turnover exceeds PLN 200 million.

What SMBs most often miss

• Comparability study (benchmark) — proof that prices are at arm's length. The hardest part.
• Transfer pricing policy — a management document on how prices are set within the group.
• TP adjustments — if intercompany results are "non-arm's-length", they must be corrected at year-end.

Penalties

• Penalty tax of 50% additional CIT (up to 100% for fraud).
• Fiscal-criminal sanctions (up to 720 daily rates).
• No documentation = reversed burden of proof (you prove prices were at arm's length, not the tax office).

The most common trap

A 0% interest "intra-group loan". From a TP standpoint this is never market. You need to set interest at WIBOR + margin, even if you don't actually want to collect it.

We run TP benchmarks and write Local Files — including with certified databases. If you have related parties, this isn't a "later" topic.