Romania’s Tax Agency ANAF made 715 controls in the area of transfer pricing between 2010 and 2015, according to a government document cited by local Profit.ro.

Transfer pricing is the setting of the price of goods and services sold between companies of the same group or with the same owners.

ANAF mostly checked the groups which showed many transactions among their own companies. The Tax Agency also looked at the groups with big financial losses.

The controls found additional taxes of RON 192 million (EUR 43 million) and diminished losses of EUR 74.6 million.

Companies need to justify the necessity for transactions with affiliates, otherwise the tax agency may consider these transactions to be part of fiscal optimization schemes. They must prove that the transactions are real and that they are made at market prices as if they were concluded with companies outside the group.

editor@romania-insider.com