{"id":3291,"date":"2024-02-01T18:14:25","date_gmt":"2024-02-01T16:14:25","guid":{"rendered":"https:\/\/nowium.com\/controale-preturi-transfer\/"},"modified":"2024-09-06T16:13:26","modified_gmt":"2024-09-06T14:13:26","slug":"transfer-pricing-tax-audits","status":"publish","type":"post","link":"https:\/\/nowium.com\/en\/transfer-pricing-tax-audits\/","title":{"rendered":"Updates from transfer pricing tax audits (2024)"},"content":{"rendered":"<p>The transfer pricing theme continues to be a current topic in tax audits.<\/p>\n<p>Monthly information on significant findings during tax audits are published on the ANAF portal. Within each material, the information are separately presented for legal persons and for natural persons. The cases \/ examples include a brief presentation of the factual situation and a summary of the main findings of the audit team.<\/p>\n<h2>Recent transfer pricing cases<\/h2>\n<p>If we look at the most recent information, dated December 2023, we find the topic of transfer prices among the cases presented. One of the cases presented is that of a Romanian company whose activity is &#8220;Manufacturing of other rubber products&#8221;, CAEN code 2219. The company is part of a group of companies having a sole shareholder a company from another EU member state. During the verified period, the company carried out metal fabrication activity, the production being delivered mainly in the European economic area.<\/p>\n<p>The fiscal inspection bodies requested the presentation of the transfer pricing file from the analysis of which they found that the audited company does not fall within the interquartile range in any year. Therefore, income was adjusted to the central tendency of the market resulting in additional income. Following the tax audit, the tax loss declared by the company was reduced and additional profit tax was calculated.<\/p>\n<p>Going further and looking at the information for the previous months, we find the theme of transfer prices in these periods as well. For example, in the information from October 2023 we find the case of a company from Romania whose activity is &#8220;Manufacturing electronic subassemblies (modules)&#8221;, CAEN code 2611, being included in the category of large taxpayers. The company carried out transactions with related parties representing purchases and deliveries of goods, services, payments and interest.<\/p>\n<p>The fiscal inspection body proceeded to adjust the Company&#8217;s result. More precisely, the audit team adjusted the operating expenses (for the production activity) in order to obtain a profitability (net margin) at the median value of the selected indicator, calculated for comparable independent companies, profitability indicator established by the company through transfer pricing file (Comparability study for contracted manufacturing activity).<\/p>\n<p><a href=\"https:\/\/taxgroup.ro\/\" target=\"_blank\" rel=\"noopener nofollow\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2743 aligncenter\" src=\"https:\/\/nowium.com\/wp-content\/uploads\/2024\/01\/TG_EN.png\" alt=\"Tax Group EN\" width=\"740\" height=\"620\" title=\"\" srcset=\"https:\/\/nowium.com\/wp-content\/uploads\/2024\/01\/TG_EN.png 940w, https:\/\/nowium.com\/wp-content\/uploads\/2024\/01\/TG_EN-300x251.png 300w, https:\/\/nowium.com\/wp-content\/uploads\/2024\/01\/TG_EN-768x644.png 768w\" sizes=\"auto, (max-width: 740px) 100vw, 740px\" \/><\/a><\/p>\n<h2>Background at the level of tax authorities<\/h2>\n<p>In October 2022, the project funded by the European Commission on strengthening the coherence of transfer pricing audit approaches and improving tax legislation in Romania has been completed. The tax authorities has achieved the following within this project:<\/p>\n<ul>\n<li>Definition of practical transfer pricing guidelines according to international standards.<\/li>\n<li>Development of a practical handbook on transfer pricing, comprising several modules with practical guidance for dealing with transfer pricing cases.<\/li>\n<li>Provision of professional training and specialization in transfer pricing for 36 officials of tax authorities.<\/li>\n<\/ul>\n<p>Almost a year and a half from this moment, through a quick scan of the latest information on significant cases from tax audits, we can conclude that the issue of transfer pricing remains a current topic within tax audits and a topic of interest for the tax authorities in Romania. Moreover, reading between the lines, we can extract some of the favorite areas of investigation of the tax inspectors in the field of transfer pricing (for example: taxpayers who register a tax loss, large taxpayers who have annual obligations in the field of transfer pricing, but also others categories of taxpayers with significant intra-group transactions, etc.).<\/p>\n<h2>Nowium recommendation<\/h2>\n<p>In these moments when the entire market is still shaken by the multiple legislative changes as well as the newly introduced additional compliance obligations (e.g. e-invoice, minimum turnover tax, etc.), <strong>our recommendation is not to omit the issue of transfer pricing from our agendas<\/strong> to be able to proactively address possible exposures in this field.<\/p>\n<p>Nowium&#8217;s transfer pricing team supports companies with a wide range of transfer pricing services from transfer pricing planning \/ documentation to support during transfer pricing audits \/ dispute resolution. Find more details <a href=\"https:\/\/nowium.com\/en\/service\/transfer-pricing\/\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/p>\n<hr \/>\n<p>Article written by <strong>Raluca Mih\u0103il\u0103, Transfer Pricing &amp; Tax Partner, Nowium Transfer Pricing<\/strong><\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"M0SdJvjZta\"><p><a href=\"https:\/\/nowium.com\/en\/member\/raluca-mihaila\/\">Raluca MIH\u0102IL\u0102<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Raluca MIH\u0102IL\u0102&#8221; &#8212; Nowium\" src=\"https:\/\/nowium.com\/en\/member\/raluca-mihaila\/embed\/#?secret=azvhSqnLAe#?secret=M0SdJvjZta\" data-secret=\"M0SdJvjZta\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>Access other articles published by Nowium in the 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Monthly information on significant findings during tax audits are published on the ANAF portal. Within each material, the information are separately presented for legal persons and for natural persons. The cases \/ examples include a brief presentation of the factual situation and&#8230;<\/p>\n","protected":false},"author":5,"featured_media":2843,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[99],"tags":[111,107,110],"class_list":["post-3291","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-noutati-en","tag-control-fiscal-en","tag-preturi-de-transfer-en","tag-ajustari-de-preturi-de-transfer-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/nowium.com\/en\/wp-json\/wp\/v2\/posts\/3291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nowium.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nowium.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nowium.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/nowium.com\/en\/wp-json\/wp\/v2\/comments?post=3291"}],"version-history":[{"count":3,"href":"https:\/\/nowium.com\/en\/wp-json\/wp\/v2\/posts\/3291\/revisions"}],"predecessor-version":[{"id":3294,"href":"https:\/\/nowium.com\/en\/wp-json\/wp\/v2\/posts\/3291\/revisions\/3294"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nowium.com\/en\/wp-json\/wp\/v2\/media\/2843"}],"wp:attachment":[{"href":"https:\/\/nowium.com\/en\/wp-json\/wp\/v2\/media?parent=3291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nowium.com\/en\/wp-json\/wp\/v2\/categories?post=3291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nowium.com\/en\/wp-json\/wp\/v2\/tags?post=3291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}