Transfer pricing documentation file
Order 442/2016, that entered into force on 02 February 2016, sets the deadlines for preparing the transfer pricing documentation file, its contents and the conditions under which it may be requested, as well as the amount of the transactions and the procedure for adjusting/estimating the transfer prices.
The large taxpayers that perform transactions with affiliates, with a total annual value, without VAT, that is greater than or equal to either of the following thresholds of significance, must prepare the transfer pricing documentation files every year:
- EUR 200,000, for the interests collected/paid for financial services, computed at the exchange rate communicated by the National Bank of Romania for the last day of the fiscal year;
- EUR 250,000, for transactions concerning the services received/provided, computed at the exchange rate communicated by the National Bank of Romania for the last day of the fiscal year;
- EUR 350,000, for transactions regarding the purchases/sales of tangible or intangible assets, computed at the exchange rate communicated by the National Bank of Romania for the last day of the fiscal year.
The deadline for preparing the transfer pricing documentation file is the legal deadline set for submitting the annual returns for corporate tax (form 101), for each fiscal year (March 25th).
The file must be submitted within 10 days following the request of the tax authorities.
The small and medium-size taxpayers shall prepare the transfer pricing documentation file only at the request of the tax inspection teams, when the transactions with affiliates exceed the aforementioned thresholds. The file shall cover all transactions with affiliates that have a total value higher than or equal to the following thresholds of significance:
- EUR 50,000 for interests recorded in relation to financial services;
- EUR 50,000 for provided/received services;
- EUR 100,000 for transactions concerning the purchases/sales of tangible or intangible assets.
The file shall also analyse the transactions with affiliates that do not exceed the thresholds of significance, but in a simplified manner, and its submission deadline shall be of 30 to 60 calendar days, with the possibility of a single extension, at the request of the taxpayer, for a period that does not exceed 30 calendar days.
If the taxpayer does not justify the compliance with the arm’s length principle, does not submit the file at the established deadline or submits an incomplete file, the tax inspection bodies shall adjust/estimate the amount of the transfer prices, as applicable.
