Transfer pricing - a key issue for related companies

What are transfer prices?

Transfer prices are the values used in transactions between related parties, e.g. companies belonging to the same group. Their proper determination and documentation is crucial in order to avoid tax sanctions and to determine income tax in accordance with the law. FLOWER ACCOUNTINGas experienced accounting office Wilanów, offers comprehensive support in the area of transfer pricing analysis and documentation.

When does the obligation to document transfer pricing arise?

The obligation to prepare transfer pricing documentation applies to companies that meet certain criteria, such as:

• Exceeding certain transaction thresholds,
• Capital, personal or family links between entities,
• Execution of transactions with foreign entities.

Incorrect transfer pricing can result in additional tax liabilities and penalties. FLOWER ACCOUNTING provides full advice on complying with legal requirements on transfer pricing.

What elements should the transfer pricing documentation contain?

Any transfer pricing documentation should include:

• Comparative analysis - demonstrating that the prices used in transactions between related parties are in line with market conditions,
• Description of the organisational structure - explaining the links between entities,
• Details of the transaction - including values, conditions and price calculation methods,
• Transfer pricing policy used in the company.

Frequently asked questions

Who is affected by transfer pricing?

Transfer pricing applies to companies that engage in transactions with related parties, both domestic and foreign.

What are the sanctions for lack of transfer pricing documentation?

Failure to provide the required documentation can result in financial penalties, as well as additional tax liabilities as a result of income assessment by the tax authorities.

Does transfer pricing have an impact on income tax?

Yes, incorrect transfer pricing can lead to a tax surcharge and penalty interest.

Why use the services of KWIATKOWSKA KSIĘGOWOŚĆ?

Transfer pricing documentation is a complex process requiring specialist knowledge and market analysis. FLOWER ACCOUNTINGas an expert in accounting in Wilanów, offers:

• Individual approach for transaction analysis,
• Comprehensive documentation meeting the requirements of the law,
• Minimising tax risks and regulatory compliance,
• Support in contacts with the tax authorities.

If your company has related party transactions, contact FLOWER ACCOUNTINGto ensure you are fully compliant with transfer pricing regulations!