Multinational Companies - Between Restructuring and Transfer Pricing

Under the current circumstances of globalised economic activities, the fiscal optimization techniques and methods are inevitably correlated with the fiscal regime of the transfer pricing that are a hot topic but also susceptible to raise contradictory opinions. Starting from these assumptions, this paper makes a selective analysis of the fiscal regulations in this field in Romania by focusing on decrypting controversial legislative aspects that are consequently interpretable. In compliance with the global trend, the Romanian legislation regarding the transfer pricing was modified in February 2008 with specific requirements regarding the contents of the file of the transfer pricing that the Romanian tax- payers that pay their tax on profit and do transactions with affiliated persons must prepare and have available in case of fiscal inspections. The purpose of the file including relevant documentation for the transfer pricing is to reflect how the prices have been established by the taxpayer during the transactions carried out with affiliated persons and to prove that they have been established in compliance with the fairness principle. The legislation regarding the transfer pricing in Romania is one of the most intricate in this region and it clearly mentions the express obligation of the taxpayers doing intra-group transactions to make and submit a file of the transfer pricing upon demand of the fiscal authorities.