On 21 October 2026, the Act of 18 September 2026 amending the Personal Income Tax (PIT) Act and the Corporate Income Tax (CIT) Act was published. The amendments simplify certain aspects of transfer pricing reporting, remove the statement included in the TPR declaration and clarify the conditions for domestic transfer pricing adjustments.
Below changes will enter into force on 5 November 2026, with those relating to TPR reporting applying to tax years beginning after 31 December 2025.
Removal of the statement in the TPR form
The amendments remove from the TPR declaration the statement confirming that the local transfer pricing documentation has been prepared in accordance with the factual state and that the prices covered by that documentation are at arm’s length. At this stage, the statement will not be an element of the Local File either (as envisaged at an earlier stage of the legislative process). Nevertheless, the obligations to apply arm’s length prices and prepare the required documentation remain unchanged.
Impact of the change: Taxpayers will no longer be required to formally confirm in the TPR form that their local documentation reflects the actual state or that the prices applied are at arm’s length. This will reduce the compliance burden on management board members associated with submitting the statement, but will not release them from the obligation to ensure that the documentation is correct and intra-group dealings comply with the arm’s length principle. Tax authorities will still be able to verify transaction terms, assess additional taxable income where non-arm’s length prices are applied and impose penalties under the Fiscal Penal Code.
Powers of attorney to sign TPR form
The specific restrictions on persons authorised to sign TPR declaration are being repealed – previously, a TPR form could only be signed by a designated management board member or by an authorised representative who was an advocate, legal advisor, tax advisor or statutory auditor. The provisions of the Tax Ordinance concerning the signing of tax returns will apply accordingly to TPR forms.
Impact of the change: A TPR form may be signed by a duly authorised representative, without the existing restriction to certain categories of professional representatives. The change is intended to facilitate the TPR filing process, particularly for entities with foreign management boards.
Less financial data in TPR form for micro and small entities
TPR forms filed by micro and small entities will no longer include general financial information on the entity. The simplification concerns entity-level data and does not constitute a general exemption from transaction reporting or the preparation of transfer pricing documentation.
Entity status is determined under Article 7(1)(1) (micro entity) or Article 7(1)(2) (small entity) of the Entrepreneurs’ Law Act. The conditions set out in those provisions must be met in the tax year preceding the year for which the TPR form is filed.
Impact of the change: These entities will not report general financial ratios in their TPR forms. Before applying the simplification, the entity’s status as a micro or small entity should be verified by reference to the definitions above.
Clarification of one of the conditions for domestic transfer pricing adjustments
Under the existing legislation, one of the conditions allowing taxpayers to make a transfer pricing adjustment is the existence of a legal basis for the exchange of tax information with the country in which the related party has its registered office or place of residence. The amended provisions of Article 11e(4) of the CIT Act and Article 23q(4) of the PIT Act expressly state that this condition applies only where the related party has its place of residence, registered office or place of management outside Poland.
This condition will not be required in the case of a domestic related party. The clarification removes doubts arising from the previous wording of the provisions.
Impact of the change: Entities making adjustments with other domestic entities will receive clear confirmation that the tax information exchange requirement does not apply to them.
Effective dates and application
The above amendments will enter into force on 5 November 2026. The new provisions on TPR forms will apply to forms for tax years beginning after 31 December 2025. For years beginning before 1 January 2026 and ending after 31 December 2025, the Act retains the existing rules. The simplifications should therefore not be applied to TPR declarations for 2025.
The existing regulations specifying the detailed scope of TPR reporting will remain in force until new regulations enter into force, but no later than 30 June 2027.
This document has been prepared for information purposes only and is of a general nature. Before taking any action based on the information presented, we recommend obtaining a binding opinion from TPA Poland’s experts.
Joanna Kubińska
Partner
