A foreign investor operating in Poland is rarely a standalone entity — they are typically part of a corporate group. Transactions between related entities (procurement of services from the parent, intra-group loans, licences, shared management costs) are subject to strict transfer pricing rules in Poland. Non-compliance may result in income being restated by the tax authority and criminal fiscal sanctions. At the same time, Poland offers favourable holding structures — CIT exemptions on dividends and gains from share disposals — worth factoring in when designing the group structure from the outset.

Transfer pricing — the basics

Transfer pricing refers to the prices applied in transactions between related parties. Poland — in line with other OECD member states — requires that such transactions be conducted at arm’s length. This means the price of a service, good or financing arrangement between related entities must correspond to the price that unrelated parties would agree on in comparable circumstances.

Related entities include: a parent company and its subsidiaries (direct or indirect — at a participation threshold of at least 25%), sister companies, and individuals with significant influence over a company.

Documentation thresholds and obligations

The obligation to prepare transfer pricing documentation depends on the value of a homogeneous transaction with a related party in the tax year:

  • PLN 10 million — threshold for commodity and financial transactions (including loans and guarantees).
  • PLN 2 million — threshold for service transactions and others.

Once the thresholds are exceeded, the company must prepare a Local File. Groups with consolidated revenues above PLN 200 million are additionally required to prepare a Master File and submit Transfer Pricing Information (TPR form).

Poland as a holding company location — tax advantages

Poland can be an attractive location for a holding company, particularly for non-EU investors planning expansion in Central Europe. Key advantages:

  • CIT exemption on dividends from subsidiaries: dividends received by a Polish holding company from EU/EEA subsidiaries are exempt from CIT under the so-called directive exemption (Article 22(4) of the CIT Act, implementing the Parent-Subsidiary Directive), provided the holding holds at least 10% of shares continuously for 2 years. This exemption operates independently of the Polish Holding Company (PSH) regime — which, since 2023, offers a 100% exemption for both domestic and foreign dividends (not limited to the EU/EEA), subject to the separate conditions described below.
  • CIT exemption on gains from share disposals (Polish Holding Company — PSH): a company meeting the PSH conditions may benefit from a 100% CIT exemption on dividends and gains from the disposal of shares in subsidiaries.
  • Double tax treaty network: Poland has over 80 active DTTs, providing flexibility in structuring financial flows.

The Polish Holding Company (PSH) is a specific tax regime available since 2022 (with significant amendments from 2023). Conditions include:

  • Holding at least 10% of shares in a subsidiary for 2 years (continuously; the requirement was extended from 1 year as of 1 January 2023).
  • No involvement in structures with tax havens.
  • Conducting genuine holding activities.

APA — advance pricing agreements

Companies conducting significant transactions with related parties may apply for an advance pricing agreement (APA) with the Ministry of Finance. An APA provides legal certainty regarding the method and price applied for a period of 3–5 years. The procedure is time-consuming (6–12 months) and involves a stamp duty ranging from PLN 50,000 to PLN 200,000 depending on the type of agreement, but eliminates the risk of the pricing being challenged by the tax authority.

⚠️ Warning: safe harbours do not eliminate arm’s length risk Some taxpayers rely on safe harbour provisions — simplified rules for financial transactions (loans) and low value-adding services. A safe harbour exempts from the obligation to prepare full documentation, but does not exempt from the obligation to apply arm’s length prices. If the transaction terms do not match the parameters specified in the regulations (e.g. the margin exceeds the permitted level), the tax authority may challenge the entire transaction.
💡 Our recommendation at Destrier Transfer pricing policy should be established before the first intra-group transaction — not after a year of operations. The tax authority may restate income for the entire period in which prices did not meet the arm’s length standard, plus interest accruing over that time. For recurring transactions of material value, an individual tax ruling (cost: PLN 40, timeline: 3 months) is worth considering as a lower-cost alternative to an APA before committing to the more expensive advance pricing agreement process. Destrier Law Firm specialises in designing transfer pricing policies and preparing Local File and Master File documentation.
Planning a holding structure or uncertain about transfer pricing obligations? Destrier Law Firm will conduct a comprehensive analysis. Get in touch.

Legal position: 2026 (updated: August 2026). This article is for informational purposes only and does not constitute legal advice. We recommend seeking individual legal advice before making any decisions.