Accounting Services for Business

rss iconRSS


/ Taxes and Law in Poland

Penalties for failure to comply with transfer pricing obligations

Penalties for failure to comply with transfer pricing obligations

Date02 Jan 2024

We would like to remind you about the obligation to submit transfer pricing information for the year 2022. The deadline for submitting information for entities whose tax year coincides with the calendar year is January 31, 2024. For other taxpayers, the statutory deadline is the end of the 11th month after the end of the tax year.

Sanctions for failure to comply with transfer pricing obligations

The current regulations of the Fiscal Penal Code (KKS) impose severe sanctions for failure to comply with transfer pricing obligations.

Actions that are subject to sanctions include:

  • Failure to prepare documentation
  • Failure to include group documentation
  • Preparation of transfer pricing documentation inconsistent with the actual facts.

According to the current provisions of the Fiscal Penal Code, violation of obligations related to informing the competent tax authority about transfer pricing (in the form of the TPR form) or submitting data in such information that is inconsistent with local transfer pricing documentation or the actual situation is currently subject to a fine of up to 720 daily rates. Delayed submission of information is subject to a fine of up to 240 daily rates.

Penalties imposed in accordance with the provisions of the Fiscal Penal Code are not the only sanctions that threaten taxpayers for non-compliance with the documentation obligation. The regulations (Tax Ordinance) provide for the possibility of imposing additional sanctions in the case of negligence related to transfer pricing that leads to a reduction in tax or an increase in loss.

The rate of additional tax liability depends on the type of violation and is:

  • 10% on improperly understated income or overstated loss resulting from improper application of transfer pricing, with the requirement to settle the tax and interest due for delay.
  • 20% on failure to submit transfer pricing documentation or submission of incomplete documentation or when the basis for additional tax liability exceeds PLN 15 million.
  • 30% in case of failure to submit transfer pricing documentation when, at the same time, the value of the basis for determining additional tax liability exceeds PLN 15 million.

If the taxpayer completes incomplete tax documentation within the period specified by the authority, not exceeding 14 days, they will not be penalized with additional tax liability.

Additional tax liability cannot be imposed on an individual who is responsible for an offence or fiscal crime in this case.

Statistics show that the number of conducted tax and customs audits related to transfer pricing is increasing from year to year. There is also a noticeable upward trend in the effectiveness of audits, which means a higher number of audits completed with an estimate of income.
Tax authorities have advanced tools at their disposal, that enable them to effectively review of the terms of transactions entered into by taxpayers with related entities.

Transfer pricing will continue to be a priority for the Ministry of Finance, as it involves significant financial values, is difficult to assess, and can lead to state revenue losses.

If you have any questions regarding this topic or if you are in need for any additional information – please do not hesitate to contact us:

Ask a question »


Elżbieta Naron

Head of Customer Relationships
Department / Senior Manager
getsix® Group
pl en de


This publication is non-binding information and serves for general information purposes. The information provided does not constitute legal, tax or management advice and does not replace individual advice. Despite careful processing, all information in this publication is provided without any guarantee for the accuracy, up-to-date nature or completeness of the information. The information in this publication is not suitable as the sole basis for action and cannot replace actual advice in individual cases. The liability of the authors or getsix® are excluded. We kindly ask you to contact us directly for a binding consultation if required. The content of this publication iis the intellectual property of getsix® or its partner companies and is protected by copyright. Users of this information may download, print and copy the contents of the publication exclusively for their own purposes.