As per the Order no. 442/2016 published by the National Agency for Fiscal Administration (ANAF) on February 2, 2016, “large taxpayers” engaged 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) must prepare transfer pricing documentation on an annual basis. The materiality threshold represents the total value of international transactions excluding Value Added Tax (VAT).

The format and content of transfer pricing documentation should be as per Chapter V of the OECD Transfer Pricing Guidelines on documentation and taxpayers must submit the transfer pricing file within 10 days after receiving a request from the tax authorities, but not earlier than 10 days following the deadline for preparing the file.

According to the published order “large taxpayers” equal to or greater than the defined thresholds (excluding VAT) must prepare transfer pricing documentation on an annual basis. The threshold amounts are €200,000 for interest registered for financial services, €250,000 for provision of services, €350,000 for acquisition or sale transactions of tangible or intangible goods. A secondary threshold is also given for large taxpayers that do not satisfy the conditions of the primary threshold and for other small and medium-sized taxpayers to prepare transfer pricing documentation upon written request of the tax authorities.

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. As per the Order no. 442/2016, if the primary 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. The deadline for presenting transfer pricing documentation for those large taxpayers that engages in related-party transactions that are below the primary threshold amounts or for small and medium-sized taxpayers is between 30 and 60 calendar days, subject to a 30-day extension if requested by the taxpayer.

According to the Order no. 442/2016 published by the National Agency for Fiscal Administration (ANAF), transfer prices will be adjusted for taxpayers that fail to substantiate that the prices are in accordance with the arm’s-length principle. Transfer prices will be estimated, where the transfer pricing documentation is incomplete. The Order no. 442/2016 also provides clarifications on how the interquartile range should be determined to assess whether a transaction was carried out in compliance with the arm’s-length principle.