Tax Flash No. 3/2016

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Order no. 442/2016 regarding the value of the transactions, the drafting deadlines, the contents and the conditions for the request of the transfer pricing file and the procedure of adjustment/estimation of transfer prices, was published in the Official Gazette 74/2016.

The obligation to prepare transfer pricing file yearly

– Large taxpayers are required to prepare the transfer pricing file yearly if the cumulative annual value of the transactions (excluding VAT) performed with related parties starting with 2016 reaches or exceeds any of the following thresholds calculated at the exchange rate valid for the last day of the fiscal year:
– EURO 200,000, in case of payment or collection of interest for financial services;
– EURO 250,000, in case of acquisitions or provision of services;
– EURO 350,000, in case of acquisitions or supplies of tangible or intangible goods.

The deadline for drafting the transfer pricing file is the same as for the submission of the annual corporate income tax statement.

The term for making it available to the fiscal authority is within 10 days from the request, but no sooner than 10 days from the expiry of the drafting deadline.

The tax authority may request the transfer pricing file within a tax audit or even in the lack of such proceedings.

The obligation to prepare transfer pricing file at request

Large taxpayers that do not exceed the above mentioned ceilings set for the annual drafting, as well as small and medium taxpayers shall draft the transfer pricing file only at the request of the tax authorities within the frame of a tax audit if the annualy cumulative value of the transactions (excluding VAT) with related parties reaches or exceeds any of the following thresholds calculated at the exchange rate valid for the last day of the fiscal year:

– EURO 50,000, in case of payment or collection of interest for financial services;
– EURO 50,000, in case of acquisitions or provision of services;
– EURO 100,000, in case of acquisitions and supplies of tangible or intangible goods.

The deadline for the presentation of the transfer pricing file, requested during the tax audit, is between 30 and 60 days, with a single possibility of extension by maximum 30 days, at the written request of the taxpayer.

In case the transfer pricing file is not presented / presented incomplete, the transfer prices will be estimated at the value set up by the market’s central tendency.

Provisions are brought regarding the contents of the transfer pricing file.

Order 442 /2016 will be applicable for the fiscal administration procedures started after 1 January 2016.

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