The update of the large taxpayers list by the Romanian Tax Authroties leads to additional obligations for most of the companies with a turnover in excess of EUR 10-12 million

The list of large taxpayers was updated by the Romanian Tax Authorities (i.e. ANAF) after more than 5 years. Following the update of the classification rules, the number of large taxpayers has increased from 2,940 to 3,364, but the number of companies appearing for the first time on this list is much higher because many of the companies that were included in the previous list from 2016 now fall into other categories or have been dissolved.

“The publication of the list of large taxpayers after almost 5 years brings with it important changes, but the good part is that it broadly aligns the financial results of companies with the classification of large taxpayer from the perspective of ANAF. Thus, over 1,800 companies will somehow find that they have become large taxpayers overnight and that they have additional obligations.”  explained Viorel Sbora, transfer pricing consultant and partner at ATIPIC Transfer Pricing Solutions.

According to the legislation in force, starting with January 1, 2022, large taxpayers will have the obligation to prepare the transfer pricing file on an annual basis if they perform intra-group transactions that exceed any of the following thresholds:

• EUR 200,000 – loan interest transactions;
• EUR 250,000 – services transactions;
• and / or EUR 350,000 – tangible and / or intangible assets transactions.

Large taxpayers who meet all these criteria must prepare the transfer pricing file no later than 10 days after the legal deadline for the submission of the annual corporate income tax returns for each fiscal year.

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“We recommend to those who have just become large taxpayers to manage in advance the preparation of the transfer pricing file, because the preparation of such a file that is also sustainable before the tax authorities can take 5-6 months  for some  of the more complex taxpayers. In addition, it is good to know that ANAF can request the presentation of the transfer pricing file even on the same day the tax audit starts.”, underlined Viorel Sbora, expert in transfer pricing.

For the non-preparation or non-presentation of the transfer pricing file by the large taxpayers, the fines are up to RON 27,000.

Beyond the fines, however, the risk that the tax auditors may adjust the transfer pricing during the tax audit must be taken into account. Following the tax audits finalized in 2020, the tax auditors performed transfer pricing adjustments of approximately RON 2 billion.