A tax advisor specializing in transfer pricing and corporate income tax. Author of numerous tax commentaries and opinions published in industry publications and expert websites.
Transfer pricing changes – the statement confirming the preparation of documentation and arm’s-length nature of prices disappears from TPR… and from the legislation?
On 10 June 2026, a new version of the draft act amending the PIT act and the CIT act was published on the website of the Government Legislation Centre. The proposed changes form part of a broader effort to simplify tax compliance obligations. One of the most significant amendments in the area of transfer pricing is the abolition of the statement previously submitted as part of the TPR Information.
Below, we present the key assumptions of the proposed amendment and its practical implications.
The statement disappears from TPR. However, it will not be included in the local transfer pricing documentation
One of the most important proposed changes is the removal from the TPR Information of the statement confirming that the local transfer pricing documentation was prepared in accordance with the actual state of affairs and that the transfer prices covered by the documentation were determined on an arm’s-length basis.
Importantly, following the public consultations, the drafters also abandoned the earlier concept of transferring this statement to the local transfer pricing documentation. In practice, this means that the statement is to be abolished rather than merely “moved” from the TPR form to the local file.
Why is the statement being removed from TPR?
According to the draft’s explanatory memorandum, the removal of the statement is primarily related to the planned simplification of the rules for signing TPR information and the aim of streamlining the process.
Previously, special rules for signing TPR were linked to the fact that the form contained a substantive statement carrying potential criminal and fiscal liability. The restriction on the group of persons authorized to sign the form made reporting more difficult in practice, particularly in larger organizations and corporate groups.
Removing the statement makes it possible to apply the rules applicable to electronic returns to TPR Information, including allowing it to be signed by an authorized representative.
During the public consultations, consideration was given to retaining the statement outside TPR, as part of the local transfer pricing documentation. This concept was ultimately abandoned, with the decision instead being made to completely abolish the obligation to submit the statement.
Abandoning the statement does not mean abandoning the verification of the arm’s-length nature of transactions
The abolition of the statement does not affect taxpayers’ substantive transfer pricing obligations. Related parties will still be required to set prices on an arm’s-length basis and, where the statutory conditions are met, prepare local transfer pricing documentation.
Tax authorities will retain full powers to verify the arm’s-length nature of controlled transactions and whether the documentation reflects the actual state of affairs. If irregularities are identified, it will still be possible to adjust the taxable income in accordance with the general rules.
Impact also on the Fiscal Penal Code
The decision to abandon the concept of transferring the statement to the local transfer pricing documentation has also resulted in the proposed amendments to the Fiscal Penal Code being dropped.
The original draft provided for liability for preparing documentation in breach of the applicable regulations, including failure to include the statement. These provisions have not been retained in the current version of the draft.
When will the changes apply?
The draft provides that the changes concerning the abolition of the statement and the rules for signing TPR Information will apply to information submitted for a tax year beginning after 31 December 2025.
Conclusions
The proposed abolition of the statement should be viewed as a genuine simplification of formal compliance obligations in the area of transfer pricing. Taxpayers will no longer be required to submit the statement either as part of the TPR Information or in the local documentation.
The change reduces formal requirements while preserving the key substantive obligations, in particular the requirement to ensure that transactions are conducted on an arm’s-length basis and that the documentation is accurate and reliable. Local transfer pricing documentation remains the primary instrument for demonstrating that settlements comply with the arm’s-length principle.
