Major changes in the TP rules:

• The definition of a “Group of entities” has been expanded.
• New turnover thresholds has been set:
  The entity will be required to prepare:
  -  Master File – if the turnover exceeds EUR 15 million and is part of an international group.
  -  Local File – if the turnover exceeds EUR 3 million.
• Exemptions for low value transactions have been introduced. TP documentation will not be required if controlled transaction or the sum of controlled transactions during the financial year do not exceed EUR 90,000 per related party.
• Deadlines for preparing TP documentation have been set. TP documentation has to be prepared by the 15th of the sixth month after the financial year end.
• Periodicity of documentation updates has been set. TP documentation can be updated every 3 years if conditions and circumstances of transactions remain unchanged. The data of controlled transactions needs to be updated annually.
• Sanctions for non-compliance with new requirements have been tightened. Non-compliance with the transfer pricing requirements will result in a penalty of EUR 1,820 – 5,590 (repeatedly – EUR 3,770 – 6,000).