The deductibility of intra-group royalty payments remains one of the most contentious issues in transfer pricing audits involving intangibles. The Polish Supreme Administrative Court’s decision of June 18th, 2025, in Poland v A-TM Licensor Sp. z o. o. shows how domestic courts engage with OECD-inspired concepts – most notably DEMPE – within the framework of national transfer pricing law. This article analyses the court’s approach to the deductibility of trademark royalties, the evidentiary standards imposed on taxpayers, and the limits of recharacterisation under Polish law. Particular attention is paid to the tension between contractual arrangements and economic substance, as well as the implications of the ruling for legal certainty and future transfer pricing audits involving marketing intangibles. The article contends that, although the court formally observes statutory limits on recharacterisation, its broad interpretation of evidentiary requirements may blur the distinction between legitimate scrutiny and the effective denial of contractual allocations.
