Poland’s Transfer Pricing in 2025: Changes in Safe Harbour for Loans

• For borrowers: The maximum margin is now 2.6% (down from 3.1%).
• For lenders: The minimum margin is now 2.0% (down from 2.2%).

What Is Safe Harbour for Financial Transactions?

Safe harbour rules simplify compliance for certain financial transactions, like loans between related parties, by setting predetermined margins that meet the arm’s length principle. This reduces the burden of transfer pricing documentation and minimizes the risk of disputes with tax authorities.

Benefits of Using Safe Harbour

• Simplified Compliance: No need for complex benchmarking studies or detailed documentation.

• Reduced Tax Disputes: Lower likelihood of challenges from tax authorities.

• Time and Cost Savings: Fewer resources needed for compliance.

• Regulatory Certainty: Clear guidelines for financial transactions.

Conditions for Applying Safe Harbour to Loans

In order to apply the safe harbour mechanism for loans, the following conditions must be met:

1. Interest Rate Determination: The interest rate on the loan, calculated annually as of the contract signing date, must be based on a reference base interest rate and margin, as specified in the official announcement by the Minister of Finance in effect at the time of the agreement.

2. No Additional Fees: No fees other than interest payments related to the loan’s granting or servicing may be charged, including commissions or premiums.

3. Loan Duration: The loan must be granted for no more than 5 years.

4. Debt Limit: During the tax year, the total amount of loans granted or borrowed from related entities, separately calculated for granted and received loans, must not exceed 20,000,000 PLN or the equivalent in another currency.

5. Lender's Jurisdiction: The lender must not be located in a jurisdiction that applies harmful tax competition practices.

These conditions ensure compliance with the Ministry of Finance’s framework, allowing businesses to benefit from simplified compliance rules while avoiding disputes.