Page 51 - Central and Eastern European Transfer Pricing Review

Romania | 51

Romania

KPMG's Views on Transfer Pricing in Romania

The Romanian legislation on transfer pricing documentation follows the
principles of the EU regulations on transfer pricing (e.g. the EU Code of Conduct
on Transfer Pricing). Transfer pricing has become increasingly a hot topic for
multinationals having a business presence in Romania, as the number of transfer
pricing audits have increased signifcantly since 2008.

Basic information Effective date of transfer pricing What is the relationship threshold
rules for transfer pricing rules to apply
Tax authority name
1 January 2004, the obligation to comply between parties?
Ministry of Public Finances; National with transfer pricing principles was Direct or indirect ownership of
Agency for Fiscal Administration (ANAF). reinforced. a minimum of 25 percent of the
participation titles or voting rights or
Citation for transfer pricing rules In May 2007, the procedure to be effective control.
Article 7 of the Romanian Fiscal followed by taxpayers in order to obtain
Code defning related parties an APA ruling from the Romanian tax What is the statute of limitations
authorities was enforced. on assessment of transfer pricing
Article 11 (2) of the Romanian
Fiscal Code and its application In July 2007, the obligation to have adjustments?
Norms providing for the arms transfer pricing documentation fles Five years from fling date.
length principles and transfer pricing available was enforced. Also, a tax audit can be performed for
methods
In February 2008, the obligation to have tax liabilities arising in the last 10 years in
Article 42 and article 79 of the specifc transfer pricing documentation case of a fscal evasion.
Romanian Fiscal Procedure Code available was enforced, thus creating a
approved by Government Ordinance more stable regulatory environment for Transfer pricing
no. 92/2003, as further amended and transfer pricing purposes.
completed requiring the preparation disclosure overview
of a transfer pricing fle Although the obligation to document Are disclosures related to transfer
domestic intra-group transactions for
Government Decision no. 529/2007, Romanian transfer pricing purposes was pricing required to be prepared or
regarding the procedure of issuing clearly stated in the Fiscal Code as of submitted to the revenue authority
the advance tax rulings and APAs May-June 2010, there is still a risk that on an annual basis (e.g. with the
Order of the President of National the previous text of the relevant provision tax return)?
No specifc transfer pricing disclosure
Agency for Fiscal Administration no. of the Fiscal Code could be interpreted in is required in the annual corporate tax
222/2008, regarding the content of a way that such documentation obligation return. A summary of transactions
the transfer pricing documentation was also applicable in the past. carried out with related parties must be
fle, as well as the postponement of disclosed when preparing the fnancial
the control until the transfer pricing statements, but there is no disclosure
fle is ready.
requirement on the tax return.

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