Transfer pricing documentation and Estonian CIT in Poland – what the Supreme Administrative Court of Poland (NSA) ruling means for companies

In its judgment of 17 February 2026 (II FSK 694/23), the Supreme Administrative Court of Poland confirmed that Estonian CIT does not exclude transfer pricing rules. Companies must still identify controlled transactions, review thresholds and exemptions and, where required, prepare a Local File, transfer pricing analysis and TPR information.

Does Estonian CIT remove transfer pricing obligations?

No. The absence of a reference to transfer pricing provisions in Chapter 6b of the Polish CIT Act does not constitute an exclusion.

Articles 11e and 11k–11t of the CIT Act continue to apply to companies using lump-sum taxation on corporate income. Documentation duties depend on the relationship between the parties, transaction type and value, statutory thresholds and available exemptions.

For foreign businesses considering investing in Poland, Estonian CIT therefore does not eliminate compliance obligations connected with intra-group settlements.

Which transactions should be monitored?

Controlled transactions may include more than sales of goods and services. Companies should also review:

• loans, cash pooling, guarantees and sureties,
• management, accounting, IT and advisory services,
• leases of property, machinery or vehicles,
• licences, trademarks, know-how and software,
• cost recharges and settlements with a parent company or shared services centre.

A contract alone is insufficient. The company should retain evidence that the service was performed, remuneration calculations, business justification and data supporting arm’s length terms.

When are Local File and TPR required?

The obligation does not arise automatically because a company uses Estonian CIT. The company must determine the value of homogeneous transactions, review the statutory thresholds and verify whether an exemption applies.

Domestic transaction exemptions require particular care. Some conditions refer to concepts used under standard CIT, such as a tax loss, and should not be applied without analysing the specific circumstances.

Where the obligation arises, the company should prepare:

• local transfer pricing documentation,
• a benchmarking or compliance analysis,
• TPR information, where required.

TPR data must be consistent with the accounting records, financial statements, documentation and actual transaction flows.

How do transfer pricing and hidden profits overlap?

Not every related-party transaction constitutes a hidden profit, but both regimes may apply to the same settlement.

Risk areas include services provided by shareholders, shareholder financing, asset leases and the use of intangible assets on non-arm’s-length terms or without sufficient business justification.

Management should assess both the price and whether the benefit is connected with the shareholder’s right to participate in profit.

What should companies and investors do?

Companies should identify related parties and controlled transactions throughout the year, monitor transaction values and collect contracts, calculations and evidence of service performance.

They should also reconcile Polish accounting and reporting data with group documentation and review settlements for hidden profit risks.

Waiting until year-end increases the likelihood of missing evidence and inconsistencies between the accounts, Local File and TPR. This is particularly important for foreign-owned companies receiving financing, licences or services from other group entities.

Read the full article here: Transfer pricing documentation and Estonian CIT in Poland – what the Supreme Administrative Court of Poland (NSA) ruling means for companies.