On paper, the safe harbour rules for transfer pricing look like a straightforward compliance shortcut. In practice, many Polish companies miss the qualifying thresholds, apply the wrong benchmark, or file documentation after the deadline – and then face a full arm's-length review by the National Revenue Administration (Krajowa Administracja Skarbowa, KAS). That review can trigger a surcharge of 10% to 20% of the adjusted income, plus interest. The cost of a missed safe harbour is rarely small.

Polish transfer pricing law provides two main safe harbour regimes: one for low-value-adding intra-group services and one for intra-group loans. Each regime sets fixed benchmarks and documentation thresholds that, if met, protect the taxpayer from a KAS arm's-length challenge. The service safe harbour applies where the mark-up on costs does not exceed 5%, and the loan safe harbour requires the interest rate to fall within a range published annually by the Ministry of Finance. Both regimes require an active election in the annual corporate income tax (CIT) return filed with the National Revenue Administration.

This alert explains what changed in the most recent update to the safe harbour parameters, which companies are affected, and what actions must be completed before the CIT filing deadline. The three sections below address the current thresholds, the compliance steps, and the consequences of missing the window.

What are the current safe harbour thresholds under Polish transfer pricing rules?

Polish transfer pricing law distinguishes two safe harbour tracks. The first covers low-value-adding intra-group services. The second covers intra-group financing transactions. Each track has its own numerical gate, and crossing either threshold disqualifies the transaction from simplified treatment.

For low-value-adding services, the mark-up on direct and indirect costs must not exceed 5% for the service recipient and must not fall below 5% for the service provider. The total value of services covered by this regime cannot exceed PLN 2 million in the tax year. Services that form part of the taxpayer's core business activity – or that constitute research and development – are explicitly excluded. (This exclusion catches more companies than expected, particularly in IT and professional services.)

For intra-group loans, the interest rate must fall within the base rate corridor published by the Minister of Finance each year. For 2025, the applicable base rate is the Warsaw Interbank Offered Rate (WIBOR) for three-month deposits plus a fixed margin. The loan principal cannot exceed PLN 20 million per transaction. The loan must also be denominated in Polish zloty; foreign-currency intra-group loans fall outside the safe harbour and require a full benchmarking study. A tax advisor Warsaw-based or otherwise should verify the corridor before each interest payment date, because the published rate can change between tax years.

The Ministry of Finance updates the loan corridor parameters in a communiqué issued no later than the end of the first month of each tax year. Companies that set interest rates in January and then fail to check the communiqué risk falling outside the safe harbour for the entire year – an irreversible consequence once the tax year closes.

Who is affected and what must be done before the filing deadline?

Any Polish CIT taxpayer that has intra-group service or financing transactions potentially qualifies – but the safe harbour election is not automatic. It must be actively claimed. Failure to elect the safe harbour in the annual CIT return forfeits the simplified treatment for that year, even if all numerical conditions were met throughout the year.

We secured a reversal of a KAS surcharge exceeding PLN 1.5 million for a manufacturing client in the Mazowieckie region (autumn 2025). The taxpayer had met every numerical threshold for the loan safe harbour but had not ticked the election box in the prior year's CIT return. The KAS proceeded with a full arm's-length review. The procedural error – not the pricing itself – triggered the liability.

The filing deadline for most CIT taxpayers with a calendar tax year is 31 March of the following year. Companies with a non-calendar tax year have three months from the end of their financial year. Transfer pricing documentation – the local file (dokumentacja lokalna) – must be prepared before that deadline and made available to KAS within seven days of a request. The local file requirement applies to transactions above PLN 10 million for financial transactions and PLN 2 million for service transactions.

Three immediate action items stand out:

  • Verify that each intra-group service transaction stays below the PLN 2 million annual cap and carries exactly a 5% mark-up.
  • Confirm the 2025 loan corridor communiqué and check that all interest rates set during the year fall within the published range.
  • Ensure the safe harbour election appears in the CIT-TP form submitted with the annual return.

Companies that also operate IP Box regimes or family foundation structures should note that the safe harbour rules interact with those regimes. An intra-group royalty arrangement, for example, is not covered by the low-value-adding services safe harbour and requires a separate benchmarking study. For businesses tracking KSeF Poland obligations alongside transfer pricing deadlines, the overlapping compliance calendar in spring creates real operational pressure. Our insights on the KSeF deadline timeline for 2026–2027 set out how to sequence those obligations.

Transaction structure also matters. A company that recently completed a share deal or asset deal acquisition may have introduced new intra-group flows that did not exist in the prior year. Those flows need to be mapped against the safe harbour criteria before the first CIT filing post-acquisition. Our analysis of share deal vs asset deal structures covers the transfer pricing implications of each route. Similarly, companies with cross-border intra-group arrangements should review the applicable double tax treaty, as treaty provisions can affect how the arm's-length standard is applied; our note on double tax treaty key provisions addresses the interaction.

We also obtained a full exemption from transfer pricing documentation requirements for a technology company in Lower Silesia (spring 2026). The company had restructured its intra-group loan to bring it within the PLN 20 million threshold and had correctly elected the safe harbour in its CIT-TP form. KAS accepted the election without challenge.

What to prepare before the CIT filing deadline:

  • A transaction log listing all intra-group service and financing flows with values and mark-ups.
  • A copy of the Ministry of Finance communiqué confirming the 2025 loan corridor.
  • The completed CIT-TP form with the safe harbour election boxes checked.
  • The local file for any transaction above the PLN 10 million or PLN 2 million documentation threshold.

Polish tax law does not provide a grace period for late safe harbour elections. Missing the deadline closes the door entirely for that tax year. Personal liability of directors can arise where a company's failure to document controlled transactions leads to a tax arrear that the company cannot satisfy – a point that Polish corporate legislation makes explicit in the context of tax obligations.

The specific situation of your company requires immediate review if any intra-group transaction was restructured during 2025. A missed safe harbour election carries irreversible consequences once the CIT return is filed.

If your company has intra-group service or financing transactions above the documentation thresholds – or if you are uncertain whether your 2025 elections were correctly filed – we will review your transaction log, check the communiqué alignment, and prepare or audit the CIT-TP form: info@kordeckipartners.com.

Frequently asked questions

Q: Can a company correct a missed safe harbour election after the CIT return has been filed?

A: Polish tax law does not allow a retroactive safe harbour election once the annual CIT return has been submitted. A corrective return can fix calculation errors, but it cannot introduce a safe harbour election that was absent from the original filing. This makes pre-filing review essential, not optional.

Q: How long does it take to prepare transfer pricing documentation for a loan transaction?

A: A local file for a straightforward intra-group loan typically takes two to four weeks to prepare, assuming the financial data is available. If the transaction falls outside the safe harbour and requires a benchmarking study using a commercial database, the timeline extends to six to eight weeks. Starting after the CIT return deadline is filed is too late.

Q: Is it a misconception that the safe harbour automatically applies if the mark-up is exactly 5%?

A: Yes. Meeting the 5% mark-up condition is necessary but not sufficient. The taxpayer must also ensure the transaction does not involve core business activity, stays below the PLN 2 million annual cap, and – critically – that the safe harbour election is made in the CIT-TP form. The numerical condition alone does not activate the protection under Polish tax law.

KORDECKI & Partners is a law firm based in Warsaw and Krakow, advising business clients across 30 jurisdictions. Our team combines expertise in Polish and international law with a practical approach to transfer pricing compliance, KAS audit defence, and cross-border tax structuring. We work with Polish entrepreneurs, foreign investors, and in-house legal teams. To discuss your situation, contact info@kordeckipartners.com.

Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. KORDECKI & Partners assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@kordeckipartners.com.