Order no 442/2016 regarding the value of transactions, deadlines for preparation, content and conditions to request the transfer pricing file and procedure to adjust/estimate transfer prices, was published into Official Gazette no 74/02.02.2016

The main provisions of the Order are:

  • Large taxpayers who carry out transactions with affiliated parties with a total annual value, exclusive of VAT, greater than or equal to any of materiality thresholds below, are required to prepare annually the transfer pricing file.
  • The deadline for preparing the transfer pricing file is the legal term set for submitting the annual corporate tax return for each fiscal year.

For large taxpayers the value of materiality level is:

  • 200,000 euros for interest received / paid
  • 250,000 euros for transactions involving services received / provided
  • 350,000 euros for transactions involving purchases / sales of goods.

 

For small and medium taxpayers, who carry out transactions with affiliated parties the value of materiality level is:

  • 50,000 euros for interest received / paid
  • 50,000 euros for transactions involving services received / provided
  • 1000,000 euros for transactions involving purchases / sales of goods.

Taxpayers who perform transactions with affiliated companies under any of the materiality thresholds above, should justify the market value principle, during a tax audit, according to the general rules provided by the accounting and tax regulations in force.

The deadline for submission of the transfer pricing file, at the request of tax authorities, will be between 30 and 60 days and can be extended only once, for a maximum period of 30 calendar days.

Transfer pricing file should not be made by the taxpayers for transactions and periods that are covered by an advance pricing agreement.

The provisions of the Order shall apply to administration procedures initiated after 1 January 2016.