Since January of this year, new rules for calculating interest rates and margins for transfer pricing have come into force in Poland. Now, loan, credit, and bond transactions between related companies will be regulated differently. This, in turn, will allow (as one of the conditions) the use of the “safe harbour” mechanism (Ed. — the regulation has been in effect in the Polish tax system since January 1, 2019).
The main changes relate to the synthetic indicators LIBOR GBP 3M and LIBOR USD 3M, the publication of which officially ended in 2024. Since March and September of last year, these rates are no longer applied. Currently, for all loans, credits, and bonds in US dollars and pounds sterling, falling under the safe harbour rules, base interest rates will be applied. They will be tied to the reference indices SOFR and SONIA 3M, respectively. Full details are available at the link.
We advise:
- Carefully analyze current contracts now and check if they comply with the new requirements.
- Update internal transfer pricing calculation procedures, considering the new rates.
- Consult with specialists.
Updating the interest rates of the safe harbour mechanism — is an excellent opportunity to strengthen your business’s position in the new financial realities. Those companies that manage to adapt in time will not only minimize risks but also ensure full transparency of their transactions in the eyes of the tax authorities.
