The guidance—Ordinul nr. 442/2016—provides that “large taxpayers” engaging in transactions with related parties, having a total annual value (determined by reference to the value of transactions conducted with all related parties, excluding value added tax (VAT)) equal to or greater than the following thresholds must prepare transfer pricing documentation on an annual basis. The threshold amounts are:
If the threshold amount is satisfied, then such large taxpayers must complete their transfer pricing documentation by the date when their annual corporate tax return for each tax year is due. In general, the deadline for presenting transfer pricing documentation to the tax authorities is 10 calendar days from the date of a request from the tax authorities (but for large taxpayers, the deadline cannot be earlier than the date required for preparation of their transfer pricing documentation).
Also, the new guidance includes rules and different threshold amounts for large taxpayers (that do not satisfy the conditions mentioned above) and other taxpayers required to prepare transfer pricing documentation upon written request of the tax authorities. The deadline for presenting transfer pricing documentation for those large taxpayers that engage in related-party transactions that are below the threshold amounts or for small and medium-size taxpayers is between 30 and 60 calendar days, subject to a 30-day extension if requested by the taxpayer.
In any event, taxpayers conducting transactions with related parties in amounts less than any of the thresholds must be able to provide evidence supporting compliance with the arm’s length principle.
Read a February 2016 report [PDF 723 KB] in both English and Romanian, prepared by the KPMG member firm in Romania: Important changes in Romanian transfer pricing legislation
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