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52 | CEE Transfer Pricing Review
What types of transfer pricing taxable proft). Interest and late If there is no priority of methods,
information must be disclosed? payment penalties may also apply to the is there a best method rule?
Not applicable. additional corporate tax due. No.
Performing a transfer pricing study offers
What are the consequences taxpayers the possibility to observe Transfer pricing audit
of failure to prepare or submit the market level for similar comparable
disclosures? companies and thus to correct its prices and penalties
Not applicable. if any advantages are noted. When the tax authority requests
a taxpayer s transfer pricing
Transfer pricing study To satisfy the requirement and/or documentation, how long does
overview obtain the benefts, are there any the taxpayer have to submit its
requirements on when the transfer
documentation?
Is preparation of a transfer pricing pricing study must be prepared and Based on the local legislation, the
study required i.e. can the submitted? transfer pricing documentation fle needs
taxpayer be penalized for mere The transfer pricing documentation fle to be submitted to the tax authorities
failure to prepare a study? must be drafted and submitted to the tax upon their written request. From the date
Yes, for all transactions. authorities upon their written request. If of the offcial request, the taxpayer has
the taxpayer does not have the transfer 3 months to submit its documentation,
The content of the transfer pricing pricing documentation fle available at with the possibility of an extension equal
documentation fle is required by Order the moment when the tax authorities to the period.
of the President of National Agency request it, a period of up to 3 months can
for Fiscal Administration no. 222/2008, be granted by the tax authorities and an If an adjustment is proposed by the
regarding the content of the transfer extension may be requested for a period tax authority, are dispute resolution
pricing documentation fle. equal to the one initially established. options available to the taxpayer
outside of competent authority?
Failure to comply with the transfer pricing When a transfer pricing study is
documentation requirements is punished prepared, should its content follow Yes.
with a fne that currently amounts Chapter V of the OECD Guidelines?
between 12,000 and 14,000 Romanian If an adjustment is sustained, can
leu (RON) (approximately 3,000 to 3,500 Yes. penalties be assessed? If so, what
Euros (EUR)). rates are applied and under what
Does the tax authority require an conditions?
If the transfer pricing documentation fle advisor/tax practitioner to have Beginning October 2010, the late payment
is incomplete, the tax authorities may specifc designation in order to interest is 0.04 percent per day, while
establish by their own means the arms prepare or submit a transfer pricing another late payment penalty (5 percent
length prices and adjust the taxable proft study? or 15 percent of the unpaid taxes
of the taxpayer accordingly. No. depending on the period of outstanding
debts between 30 and 90 days or over
Other than complying with a 90 days) may also be added to such
requirement per the previous Transfer pricing methods upward adjustments.
question, describe the benefts, if Are transfer pricing methods
any, of preparing and maintaining outlined in Chapter II of the To what extent are transfer pricing
a transfer pricing study? OECD Guidelines acceptable? penalties enforced?
If the taxpayer does not submit the Yes. Always.
transfer pricing documentation fle
to the authorities within the provided Is there a priority among the What defenses are available with
term, or if the fle is incomplete, the tax acceptable methods? respect to penalties?
authorities may than establish by their According to the local legislation, CUP Comprehensive and proper transfer
own means the arms length prices and is the frst method to be considered. pricing documentation.
adjust the taxable proft of the taxpayer However, in practice, the trend is to
accordingly for the audited period (16 recognize the appropriateness of the
percent tax will apply to the additional proft-based methods.
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