Transfer pricing
Portugal: PTA has decided that Advance Pricing Agreements are the suitable mechanism to determine the transfer pricing method and the arm's lengh pricing, under intragroup service agreements
The Portuguese Tax Authorities (PTA) decided, in the context of a Binding Information Request (PIV) –Case no. 22442–, that this is not the appropriated approach for determining the transfer pricing method nor the arm’s length pricing between related parties under an intragroup service agreement. Instead, PTA considered that entering into an Advance Pricing Agreement (APA) is the suitable mechanism for these cases.Transfer pricing: The OECD publishes recommendations addressing the impact of COVID-19 on controlled transactions
On December 18, 2020, the Organization for Economic Cooperation and Development (OECD) published guidance (access here) to clarify and illustrate the practical application of the arm’s length principle in controlled transactions affected by the COVID-19 crisis. In light of the contents of the guidance, taxpayers should analyze the effects of the pandemic on their transfer pricing policies, adjust their economic analyses, review their intragroup agreements and verify whether there will be any substantial change in their advance pricing arrangements.Transfer pricing: Recommendations in relation to the COVID-19 crisis
The COVID-19 outbreak at the beginning of 2020 has caused an unprecedented worldwide crisis, first in healthcare, later in the economy. On the subject of the economy, although there has been much discussion about the various ways and times that the impatiently awaited recovery will occur, there are no signs of it happening in the short term, and the pandemic’s effects on the economy are likely to be felt for a long time. That also has an impact on transfer pricing, and will have (and is actually already having) important consequences on how controlled transactions are carried out within multinational groups, on how prices are determined in those transactions, and on how these issues must be addressed with the tax authorities.COVID-19: The health crisis may affect the analysis, pricing and documentation of controlled transactions
The current international health emergency is having a huge impact in every area, including tax, and will foreseeably have lasting effects. Transfer pricing is not immune to this situation and its consequences are being felt in elements such as intra-group financing, how controlled transactions are carried out, priced and documented, or the advance pricing agreements concluded with the tax authorities.It has been amended the transfer pricing regime and the transfer pricing file obligations
Law no.119/2019, 18 September, was officially published, which amends, among others, the transfer pricing regime, namely articles 63, 130 and 138 of the Corporate Income Tax (“CIT”) Code, which establish the transfer pricing regime, the tax file obligations and the advance pricing agreements.Changes in Polish transfer pricing regulations in 2019
As of January 1, 2019, several amendments to Polish tax law are expected. Transfer pricing is subject to a number of new regulations which will apply to profits (losses) earned starting on January 1, 2019. The details of those amendments are as follows.