Group transfer pricing documentation (Master File)

Elements of group transfer pricing documentation (master file):

Description of the capital group

• a description or diagram of the ownership structure of the capital group, stating the name and registered office or place of management of the entities belonging to it
• a description of the subject matter and scope of the activity carried on by the capital group

Description of the material intangible assets of the capital group

• a general description of the capital group's strategy for creating, developing, owning and using intangible assets, together with information on the location of material research and development centres and of the centres managing research and development functions
• a list of the intangible assets, or groups of them, that are material from a transfer pricing point of view, indicating the entities holding legal title to those assets
• a list of the material agreements or arrangements concluded between related parties of the capital group concerning intangible assets, including cost contribution arrangements, research and development agreements and licence agreements
• a description of the capital group's transfer pricing policy for research and development activity and for intangible assets
• a general description of material changes in the control and ownership of intangible assets and in the use of those assets, indicating the entities involved, their registered office or place of management and the remuneration or compensation paid in respect of those changes

Description of the material financial transactions of the capital group

• a general description of how the capital group's activity is financed, including information on material financing agreements concluded with unrelated parties
• an indication of the entities performing central financing functions within the capital group and of their registered office and place of effective management
• a general description of the transfer pricing policy for financing between related parties

Financial and tax information on the capital group

• the annual consolidated financial statements of the capital group
• a list and brief description of the unilateral advance pricing arrangements or other tax rulings concluded by related parties of the capital group concerning the attribution of income between states.

The detailed scope of the elements of group transfer pricing documentation is laid down in the Regulation of the Minister of Finance of 21 December 2018 on transfer pricing documentation for corporate income tax and personal income tax purposes.

The legal position in 2017

Group documentation (master file)

Where the revenue or costs, within the meaning of the accounting regulations, of a taxpayer (or of a company that is not a legal person in which the taxpayer earns income from its interest) exceeded the equivalent of EUR 20 million, in the case of the taxpayer in the year preceding the tax year and in the case of a company that is not a legal person in the previous financial year within the meaning of the accounting regulations, the tax documentation prepared should also contain information about the group of related parties to which the taxpayer belongs, alongside the local documentation.

That information covers in particular:

• identification of the related party that prepared the information about the group of related parties, stating the date on which it files its tax return;
• the organisational structure of the group of related parties;
• a description of the rules for setting transaction prices (the transfer pricing policy) applied by the group of related parties;
• a description of the subject matter and scope of the activity carried on by the group of related parties;
• a description of the material intangible assets held, created, developed and used in its activity by the group of related parties;
• a description of the financial situation of the entities making up the group, together with the consolidated financial statements of the related parties making up the group;
• a description of the income tax arrangements concluded by the entities making up the group of related parties with the tax administrations of states other than the Republic of Poland, including unilateral advance pricing arrangements.

Under the Regulation of the Minister of Finance of 14 March 2018 on the extension of the time limits for performing certain obligations relating to tax documentation, the deadline for preparing the tax documentation, filing with the tax office the statement that the tax documentation has been prepared and attaching the simplified report to the tax return for the tax year is extended to the end of the ninth month after the end of the tax year