Romanian Transfer Pricing Legislation – An Analysis From The Country-By-Country Reporting Perspective

As a consequence of the multinational group companies`expansion across various jurisdictions and also of the increasing in the related party transactions performed within these groups, the transfer pricing subject has begun to be considered an important one for the jurisdictions, one of the most recent and discussed topic at global level being related to the country-by-country reporting documentation. In this context, the paper presents an overview of the Romanian transfer pricing legislation, having the following main objectives: i) the analysis of the Emergency Ordinance no. 42/2017 in order to design a logical scheme which could help the professionals and researches from the tax field to have a good understanding of the provisions of this Ordinance and to easily determine when a Romanian entity has the obligation to prepare a country-by-country documentation; ii) the analysis of the fact regarding how fast implemented Romania a country-by-country reporting legislation compared with the other European countries. The results of the study show that at European level at the earliest the obligation to prepare a country-by-country documentation was applied for the reporting year staring with 1 January 2016. More than 62% of the European countries (i.e. 29 countries from 47 analyzed) implemented a country-by-country reporting documentation starting with this reporting tax year, Romania being one of these countries.