Transfer pricing documentation. Related entities.
Transfer pricing Documentation
We would like to remind you of the existing obligation to produce transfer pricing documentation for the transactions of contracted partnerships. This issue is particularly important in light of the increasing interest of the tax authorities on transfer pricing.
We encourage you to read our blog posts about transfer pricing and related entities.
From 1 January 2017 Taxable persons whose income or expenses (as defined in the balance sheet legislation) are achieved in 2016, Exceeded 2 million euro, are obliged to document transactions with related parties in 2017 year.
The obligation to document the transaction relates to m.in. Contracts for the contracting of non-legal entities, i.e. Corporations and partnerships – the company's public, partnership, limited partnerships and joint-stock partnerships, in which the total value contributed by the partners exceeds the equivalent of 50.000 euros.
Therefore, documenting the 2017 They will be subject to the contracts of personal partnerships concluded this year, as well as amendments to such contracts if, as a result, the total value of the contributions contributed exceeds the equivalent of EUR 50.000. It should be noted that contributions from shareholders of the company may be monetary or non-monetary.
Note! The Limit of 50.000 euros is fixed, i.e. is not increased due to the amount of income/expenses of the taxpayer for the previous tax year.
Importantly, the laws on income taxes (PIT and CIT) stipulate that, where the value of contributions exceeded EUR 50.000, the obligation to produce documentation for all shareholders, not only for those who have brought Cartridges exceeding this limit.
For example, the dossier should be drawn up for both the Venturer who concludes the partnership, which brings 5.000 euros, as well as to the one who makes 100.000 euros.
At the same time, we remind you that the obligation to document the contracts of personal companies also relates to those transactions that were concluded between 2011-2016 (this is the limitation period for tax liabilities) if, as a result of the conclusion of a partnership agreement, the total The shareholder value of the contributions exceeded the equivalent of EUR 50 000.
In view of the above, we strongly recommend that you verify the value of your contracts of personal partnerships (and the Civil partnership agreements), including the agreements concluded between 2011-2017 and 2004.
Write to biuro@tplegal.pl and get a questionnaire to assess the scope of the transfer pricing documentation, or call + 48 603 934 996 or WhatsApp or Terminal.