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07 July 2026 Romania introduces mandatory annual transfer pricing report submission for large taxpayers
Romania's National Authority for Fiscal Administration (NAFA) published Order 828/2026 on 2 July 2026, requiring large taxpayers to electronically submit annual transfer pricing reports. The new rules include new transaction thresholds, preparation deadlines, content and submission requirements for transfer pricing reports, as well as the procedure for transfer pricing adjustments and estimations. The new rules represent the most significant reform of the Romanian transfer pricing documentation framework since its introduction in 2016. The rules require large taxpayers meeting the new materiality thresholds to prepare the transfer pricing report on an annual basis by the statutory deadline for filing the corporate income tax return. The transfer pricing reports must be signed by the legal representative or an authorized representative and electronically submitted through the Private Virtual Space (SPV), within 30 working days after the corporate income tax return filing deadline. If the transfer pricing report has not been submitted through the SPV, the tax authorities may request it during a tax audit. In such cases, the report must be provided within a maximum of five working days from the request date. The annual transfer pricing report preparation obligation applies only if the value of the transactions falling within a particular category exceeds the relevant materiality threshold for a specific related party. The materiality thresholds are assessed separately (excluding value-added tax (VAT) for each related party and each individual transaction category as follows:
Unlike large taxpayers and similar to the previous rules, small and medium-sized taxpayers are only required to prepare and submit a transfer pricing report if the tax authorities request the report during a tax audit. The report must be provided within 30 to 60 working days from the date of the request, with the possibility of a one-time extension of up to 30 additional working days upon a justified request. For small and medium-sized taxpayers, the materiality thresholds are assessed separately (excluding VAT) for each related party and each individual transaction category as follows:
Taxpayers with related-party transactions that do not exceed the applicable materiality thresholds are not required to prepare transfer pricing reports. However, the Romanian tax authorities may request that a transfer pricing report be prepared and submitted for specific transactions and tax periods during a tax audit if they consider it justified by a risk analysis. In such cases, the report must be prepared and submitted within the deadline established by the tax authorities, which cannot be shorter than 30 working days from the request date and may be extended once, upon a justified request, for up to an additional 30 working days. During the period granted for preparing and submitting the transfer pricing report, the tax audit may be suspended in accordance with the provisions of the Fiscal Procedure Code. The new rules substantially expand the content that must be included in a transfer pricing report, including new requirements regarding functional analysis profiles, business restructurings, tested party selection and comparability analyses. The comparability analysis requirements are stricter, introducing criteria for the geographic search of comparables and requiring greater transparency regarding the search strategy, accepted/rejected companies and the databases used. Benchmarking studies must be submitted in Excel format, including the relevant formulas and quantified results. A new mandatory reporting Annex introduces a standardized disclosure of related-party transactions and year-end transfer pricing adjustments. This Annex requires a structured breakdown of revenue and expense-generating transactions and loans, reported separately for each counterparty. Disclosure must include annual transaction values, year-end transfer pricing adjustments and references to the corresponding sections of the transfer pricing report. The new rules also clarify the circumstances in which a transfer pricing report may be regarded as incomplete. If a report is deemed incomplete, the tax authorities may proceed with transfer pricing estimations for the relevant transactions and periods, determining any adjustments or estimations by reference to the central tendency of the market. The new framework applies to transactions carried out starting from 1 January 2026, while the procedural provisions will apply to tax administration procedures (e.g., tax audits) initiated after 1 January 2027. Transfer pricing reports are not required to be prepared for transactions and periods covered by a valid NAFA-issued Advance Pricing Agreement (APA). Likewise, transfer pricing reports are not required for transactions and periods for which a transfer pricing adjustment or estimation decision has been issued and effectively implemented by the affected Romanian affiliated parties. New APA regulations were also introduced under NAFA Order 857/2026. For details, see EY Global Tax Alert, Romania adopts new rules for advance pricing agreements, dated 7 July 2026. Given the tighter timelines and the more-detailed evidence expected by the tax authorities, businesses should assess as early as possible:
Document ID: 2026-1429 | ||||||
