October 19, 2016 We want to be recognized as leaders in our field of activity and to contribute to the financial education of those who benefit from professional collaboration with us or for those who want to know and understand more. In this article we offer you information about an extremely sensitive area, due to the different interpretations that may come from the tax inspectors, namely the transfer prices. Transfer prices are the prices at which transactions take place between companies that are part of the same group. The transaction between the affiliated parties must be concluded at market price, in other words at the price at which a similar transaction between independent parties would have been concluded, in comparable economic conditions. If the transaction price between the affiliates is not in the market range, it is considered that the profits obtained by the parties as a result of the transaction are not correctly reflected, thus affecting the taxes and fees paid.
Transfer pricing refers to the complex of laws and practices by which states ensure that the profit obtained from the intra-group transfer of goods, services or intellectual property rights is recorded and taxed where it is obtained. In Romania there are specific legal requirements for the transfer prices to be at the level of the prices practiced in the transactions between the independent, ie at the market price. The company involved in affiliate transactions has the obligation to prove compliance with legal provisions through the transfer pricing file. Failure to present this file at the request of the control bodies attracts fines between 12,000 and 14,000 lei. To be always up to date with tax news or to get the right advice for your business, contact us and we can talk.