More Frequent Transfer Pricing Audits – Announcement by the Minister of Finance

Ministry of Finance announces fight against tax avoidance through the use of transfer pricing

The Ministry of Finance has announced a crackdown on tax avoidance through transfer pricing. During a press briefing on July 31, 2025, the Minister of Finance emphasized that the Ministry will place particular focus on tackling tax avoidance involving transfer pricing. Following this announcement, an increase in audits in this area is expected. The Minister stressed that aggressive tax optimization through transfer pricing mainly concerns multinational corporations. According to the Minister, such practices distort fair competition and can have a negative impact on smaller, domestic businesses. Still, we believe that the risk exists that Polish companies may also be subject to more frequent transfer pricing audits. To support this increased focus, the Minister cited the following facts:

• In 2024, the adjusted taxable income related to transfer pricing increased by nearly 100% compared to 2023.
• In just the first half of 2025, tax authorities detected underreported income due to transfer pricing that was 30% higher than in the entire year of 2023. This underreporting also results in lower declared taxes.

New Tools in the Hands of Authorities

To combat tax avoidance through transfer pricing, the Ministry announced the creation of the Competence Centre for Aggressive Tax Planning based in Cracow. This unit will be responsible for coordinating efforts and collecting knowledge on counteracting tax avoidance, with a special focus on transfer pricing. With expanded organizational resources, tax authorities will be able to conduct more thorough verifications of transfer pricing obligations.

The Ministry of Finance has also established a special task force, whose goal is to prepare, by the end of October 2025, a comprehensive report on tax avoidance and legislative proposals aimed at limiting aggressive tax practices—especially the abusive use of transfer pricing. The outcome of this initiative could significantly impact taxpayers in Poland.

Additionally, the Ministry is implementing other tools aimed at tightening the tax system, such as electronic accounting records, JPK_CIT, and the National e-Invoicing System (KSeF), which are expected to enable more effective monitoring and detection of irregularities.

How We Can Support You

In view of the upcoming challenges, we are ready to support you in fulfilling your transfer pricing obligations. We have extensive experience in this area, having prepared numerous transfer pricing documentations for companies in various sectors, including IT, construction, and manufacturing. We have developed a proprietary method for assessing the arm’s length nature of share capital increase transactions, which has been well-received by tax authorities. We also assist clients in disputes with tax authorities regarding transfer pricing matters.

Our tax team has been recognized by International Tax Review (ITR), including in the categories Transfer Pricing Law Firm of the Year (EMEA Region) and Transfer Pricing Law Firm of the Year (Poland). Furthermore, the head of our tax team, Piotr Prokocki was shortlisted for the Transfer Pricing Lawyer of the Year at the ITR World Tax Awards (EMEA) for 2025.

If you are interested in our transfer pricing and tax advisory services, we encourage you to get in touch with us.