Worldwide transfer pricing reference guide 2014

Romania (continued)
Documentation requirements (continued)
The transfer pricing documentation file should comprise of information regarding the taxpayer, the group and the related party
transactions (including an analysis of functions performed and risks assumed by the related parties), as well as information on the
transfer pricing methods used for determining the value of related party transactions. Finally, it should contain a set of relevant
statistical comparables.
Documentation deadlines
The term for the provision of the transfer pricing documentation file is set by the tax authority depending on the complexity of
transactions. It can be for a period of up to three months from the date of tax authority’s request (such term may be extended only once,
for a period equal to the initial period). The transfer pricing documentation may be requested by the tax authority during any tax audit
(e.g., audits for VAT reimbursement requests), and there is no specific requirement to submit transfer pricing documentation to the
Romanian tax authority along with the annual tax returns.
Separately, taxpayers that have an APA must include in the annual report and submit to ANAF regarding observance of the APA terms
and conditions. This report deadline is similar to that of the submission of annual financial statements, normally at the end of May.
Noncompliance with documentation deadline provisions leads to cancellation of the APA.
Statute of limitations on transfer pricing assessments
No specific statute of limitations exists for transfer pricing assessments. However, general rules for statute of limitations are applicable,
i.e., the Romanian tax authority may normally review tax-related matters retroactively for five years (or 10 years in the case of fiscal
evasion or fraud).
Return disclosures/related party disclosures
Generally, information on related party transactions undertaken by a Romanian entity is disclosed only upon the specific request of the
Romanian tax authority. For statutory accounting reporting purposes, Romanian companies are required to disclose the transactions
undertaken with related parties.
Separately from the above, the Romanian legislation provides for the following general disclosure requirements:
• Disclosure of transactions performed by Romanian entities with non-resident companies for which the Romanian company has an
obligation to withhold taxes
• Disclosure or registration of contracts concluded by Romanian entities with non-resident companies and individuals performing services
in Romania which may trigger Romanian permanent establishment exposure
• Disclosure of long-term financing contracted by a Romanian entity with non-resident companies or individuals
Transfer pricing-specific returns
No specific transfer pricing returns for related party transactions are currently in place under the Romanian transfer pricing rules.
Frequency of tax audit and transfer pricing scrutiny by the tax authority
The likelihood of an annual tax audit in general can be characterized as medium. The likelihood that transfer pricing will be reviewed as
part of that audit is high and the likelihood that, if transfer pricing is reviewed as part of the audit the transfer pricing methodology will be
challenged, is medium.
APA opportunity
Comprehensive APA procedures and requirements have been in effect in Romania since June 2007. An APA may be unilateral, bilateral
or multilateral.
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