Preparing for the new TP changes – Part 1.

A new transfer pricing decree issued by the Ministry for National Economy has entered into force, introducing significant changes to documentation and administrative requirements. The aim of the new decree is to reduce administrative burdens, curb tax avoidance, and support tax audits. Due to the increasing penalty risks observed in recent years, the new regulation once again draws attention to the heightened importance of transfer pricing. For companies, a comprehensive review of their current documentation practices and alignment with the new rules will be practically unavoidable. The provisions of the new decree apply to tax years starting in 2026; however, taxpayers may choose to apply the new rules already for the 2025 tax year.

Follow our updates to stay informed about the most important actions and guidance – we help you navigate the changes and prepare for the necessary steps.

In the first part of our article series, we briefly introduce a new obligation: the benefit test.

What is the benefit test and why is it important?

One of the key elements of the new regulation is the benefit test, which will become a mandatory component of transfer pricing documentation for financial transactions and other services. The obligation naturally falls on the service recipient, limiting the possibility of unjustified cost deductions in the tax base. The purpose of the test is to allow taxpayers to demonstrate that a service obtained from another group entity is fully necessary and provides genuine economic benefit to their business operations. This supports transparent and fair taxation practices.

During the assessment, the taxpayer must prove that, under similar conditions, they would also order the given service from an independent party or would perform it themselves.

The application of the test helps reduce opportunities for tax avoidance, as taxpayers must justify the actual economic benefit of the services and prove that they are not merely artificial arrangements intended to reduce the tax base. Thus, the tax authority may rely on the facts and conclusions presented in the analysis when assessing deductibility. In addition, the test can serve as an important pillar of determining the arm’s length price. By validating the economic rationale—which is an implicit requirement for an arm’s length price—the test becomes part of the corporate compliance process, ensuring that transactions are accounted for in line with the arm’s length principle when determining the tax base.

The domestic amendments are aligned with the OECD Transfer Pricing Guidelines' planned revisions for 2026, which also place greater emphasis on the benefit test. This indicates that the benefit test is becoming an increasingly significant component of transfer pricing practices not only domestically but also internationally.

Do not leave preparation to the last minute

The new decree will likely have a substantial impact on the day-to-day operations of businesses, making early preparation essential. Some of the amendments increase administrative requirements, necessitate revised documentation practices, and require careful planning. Improper or incomplete documentation may result in significant penalties.

The introduction of the benefit test is a particularly important change that may justify involving transfer pricing experts when designing or reviewing documentation practices.