Romania's National Authority for Fiscal Administration (NAFA) published Order 827/2026 on 2 July 2026, approving the new procedure for issuing and amending advance pricing agreements (APAs), as well as the required content of the application and supporting documentation. The Order clarifies the procedural framework for unilateral, bilateral and multilateral APAs and introduces detailed requirements for APA applications, rollback requests and annual monitoring reports.

Scope of new APA procedure

NAFA Order 827/2026 applies to the central tax authority's issuance and amendment of APAs and covers the conditions and methods that can be used to determine transfer prices for transactions between related parties over a fixed period. Taxpayers registered with the Romanian tax authorities and carrying out transactions with related parties may request that the tax authorities issue or amend an APA.

Separate applications are required, as applicable, for APAs covering future transactions and APAs covering prior periods. A standalone APA cannot be requested exclusively for a period prior to the filing date of the application.

The procedure also allows taxpayers that filed for a bilateral or multilateral APA to request its conversion into a unilateral APA at any stage of the process, with notification of the tax authority(ies) involved.

Rollback APAs and validity period

An APA may be issued for a maximum period of five years. In the case of future-transaction APAs or APA amendment applications, the APA may take effect starting with the fiscal year in which the application was filed, upon taxpayers' request.

If the transaction covered by a future APA was carried out before the APA period, taxpayers may request an APA for a prior period of up to five closed fiscal years preceding the year in which the application is filed, provided that the specific similarity criteria are met.

Rollback eligibility is subject to a strict similarity analysis. The prior-period transaction must be similar in terms of object and functional analysis, involve the same related parties and be governed by contractual terms that do not differ significantly from those covered by the future APA.

Taxpayers that were subject to a completed tax audit covering corporate income tax for a period overlapping with the prior period for which rollback application is requested cannot file such an application.

Expanded APA application and documentation requirements

The APA application must include extensive information regarding the requested APA, the group, the Romanian taxpayer and the analyzed transaction. This information includes the list of all intragroup transactions with each related party, year-end transfer pricing adjustments, relevant management positions, business restructurings, business strategy, research and development (R&D) activities, functional and economic analysis. The Order also introduces detailed requirements for the comparability study.

The content of the APA application has also been aligned with the amendments introduced by NAFA Order 828/2026, published on 2 July 2026. For details, see EY Global Tax Alert, Romania introduces mandatory annual transfer pricing report submission for large taxpayers, dated 7 July 2026.

Rejection of an APA application

An APA application may be rejected if any of the following criteria are met:

• The application and supporting documentation do not meet the minimum content requirements and the taxpayer does not provide the requested clarifications or documents within 60 business days from the tax authority's request
• An APA amendment request for extension, expansion or revision is not filed at least 30 days before the expiration of the previously approved APA
• The tax authority establishes, based on documented evidence, that the application and the submitted documentation contain information that is inaccurate or inconsistent with reality, or that conceals a different factual situation

For bilateral or multilateral APAs, the rejection is communicated to the taxpayer only after consultation and prior agreement with the relevant foreign tax authorities.

Annual monitoring and consequences of noncompliance

Taxpayers benefiting from a future-transaction APA must submit an annual report on the implementation of the APA's terms and conditions by the statutory deadline for filing annual financial statements or annual accounting reports. The report, signed by the legal representative or authorized representative, must be submitted electronically through the Private Virtual Space.

For APAs covering prior periods, the annual report must be submitted within 90 business days from the communication date of the order approving the APA and must be prepared for each fiscal year covered by the APA.

Implications

Given the more detailed procedural and evidentiary requirements, taxpayers considering an APA should assess as early as possible:

• Whether relevant transactions are suitable for an APA
• Whether sufficient evidence is available to support the proposed transfer pricing methodology, comparability analysis and critical assumptions
• Whether prior periods could be covered through a rollback APA, subject to the applicable similarity conditions and procedural limitations