RomaniaRomania

Legal ReferenceLaw no. 227/2015 regarding the Fiscal Code, as latest amended ( Title I, Chapter IV Article 11 para 4)3; Order no. 442/2016 on conditions surrounding the amounts of transactions, submission of the transfer pricing file, content and conditions of requesting the preparation of the transfer pricing documentation file and application of transfer pricing adjustment/estimation procedure4

All transactions between related parties are required to comply with the arm’s length principle (ALP). This obligation extends to both domestic and cross-border intragroup dealings, ensuring that such transactions are conducted under conditions consistent with those that would have been agreed upon by independent parties.

Legal ReferenceLaw no. 227/2015 regarding the Fiscal Code, as latest amended ( Title I, Chapter IV Article 11 para 4)

The Organisation for Economic Co-operation and Development Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (hereinafter “OECD TPG”) are expressly incorporated by reference into Romanian legislation, thereby acquiring binding legal effect. Consequently, the OECD TPG form an integral part of the domestic legal framework and are fully applicable in the assessment and documentation of transfer pricing matters in Romania.

Legal ReferenceLaw no. 227/2015 regarding the Fiscal Code, as latest amended (Title I, Chapter III, Article 7, point 26)

Definition of the affiliated Persons – as per the local legislation: A person shall be deemed affiliated with another person where the relationship between them exists under at least one of the following situations: a) a natural person is affiliated with another natural person if such persons are spouse or relatives up to the third degree, inclusive; b) a natural person is affiliated with a legal person if the natural person owns, directly or indirectly, including holdings of affiliated persons, a minimum of 25% by value/number of the participation titles, or voting rights in the legal person, or effectively controls the legal person; c) a legal person is affiliated with another legal person if it owns, directly or indirectly, including holdings of affiliated persons, a minimum of 25% by value/number of the participation titles, or voting rights in the other legal person, or effectively controls that legal person; d) a legal person is affiliated with another legal person if a person owns, directly or indirectly, including holdings of affiliated persons, a minimum of 25% by value/number of the participation titles, or voting rights in the first and the second legal person, or effectively controls both legal persons;

Legal ReferenceLaw no. 227/2015 regarding the Fiscal Code, as latest amended (Title I, Chapter IV, Art. 11, para. 4)

The Fiscal Code includes detailed provisions on transfer pricing, explicitly regulating the methods prescribed by the OECD TPG. Furthermore, it acknowledges the applicability of “any other method” provided under the OECD TPG, thereby ensuring that the most appropriate method may be applied in each case to reflect the arm’s length principle.

• CUP (provided)
• Resale Price (provided)
• Cost Plus (provided)
• TNMM (provided)
• Profit Split (provided)
• Other (provided)

Legal ReferenceLaw no. 227/2015 regarding the Fiscal Code, as latest amended (Title I Chapter IV Art. 11 para 4 - point 5 para. 4)

There is no prescribed hierarchy in the selection of transfer pricing methods. The internationally accepted standard has been the application of the “most appropriate method” as defined by the OECD TPG. When determining the most appropriate transfer pricing method, the following criteria must be considered: the circumstances under which prices are set in transactions carried out under free market conditions on commercially comparable markets; the availability of reliable data derived from the actual operations of the affiliated parties engaged in comparable transactions; the degree of accuracy with which comparability adjustments can be performed; the specific circumstances of the case under review; the actual activities undertaken by each of the affiliated parties; the characteristics of the relevant market and of the taxpayer’s business activity; the extent and quality of documentation that can be provided by the taxpayer.

• Hierarchy of methods (not selected)
• Most appropriate method (selected)

Legal ReferenceLaw no. 227/2015 regarding the Fiscal Code, as latest amended (Title I, Chapter IV, Art. 11, para 4)

Romanian legislation does not set out detailed provisions specifically addressing commodity transactions. However, through explicit reference to the OECD TPG, these rules are applicable in the Romanian context. In practice, the Romanian tax authorities and taxpayers alike follow the principles and recommendations laid down in the OECD TPG, including the specific guidance on commodity transactions contained in paragraphs 2.18–2.22.

Legal ReferenceLaw no. 227/2015 regarding the Fiscal Code, as latest amended (Title I Chapter IV Art. 11 para. 4 )

Romania applies the comparability analysis framework set out in Chapter III of the OECD TPG.

Legal ReferenceOrder no. 442/2016 on conditions surrounding the amounts of transactions, submission of the transfer pricing file, content and conditions of requesting the preparation of the transfer pricing documentation file and application of transfer pricing adjustment/estimation procedure (Art. 8 para. 1)

When conducting a search for comparables, Romanian legislation establishes a hierarchy of territorial criteria, to be applied in the following order: national, European Union, pan-European and international. However, the practical application of these geographical criteria is largely dependent on the location and the availability of reliable data, for the selected tested party.

Legal ReferenceOrder no. 442/2016 on conditions surrounding the amounts of transactions, submission of the transfer pricing file, content and conditions of requesting the preparation of the transfer pricing documentation file and application of transfer pricing adjustment/estimation procedure (Art. 8 para. 2, Art. 9 para. 3)

Romanian legislation requires that data used in a comparability analysis be reasonably available at the time of setting or testing transfer prices. Where transfer prices are estimated by the tax authorities, the same data must also be accessible to the taxpayer, ensuring transparency and fairness. Taxpayers are further required to retain supporting evidence demonstrating what data was available and consulted during the analysis. The use of non-public data is not permitted for both taxpayers and the tax administration, thereby upholding the principle of equal access to information.

Legal ReferenceOrder no. 442/2016 on conditions surrounding the amounts of transactions, submission of the transfer pricing file, content and conditions of requesting the preparation of the transfer pricing documentation file and application of transfer pricing adjustment/estimation procedure (Art. 8)

Romanian legislation mandates the use of an arm’s length range, determined through appropriate statistical tools such as the interquartile range, when establishing arm’s length remuneration. In the context of a tax audit, however, the median of the range is applied as the reference point for potential adjustments. Voluntary transfer pricing adjustments made by taxpayers to ensure compliance with the arm’s length principle may be effected at any point within the interquartile range.

Legal ReferenceLaw no. 227/2015 regarding the Fiscal Code, as latest amended (Title I Chapter IV Art. 11 para 4)

Romanian legislation permits and, where necessary, requires the use of comparability adjustments when applying a transfer pricing method. Given that the OECD TPG are expressly recognized as applicable under domestic law, the references and principles set out in the OECD TPG regarding comparability adjustments are likewise implicitly applicable in Romania.

Legal ReferenceLaw no. 227/2015 regarding the Fiscal Code, as latest amended (Title I Chapter IV Art. 11 para. 4)

Romanian legislation does not include specific guidance on transactions involving intangibles but expressly refers to the OECD TPG in this respect. As the OECD TPG are recognized as applicable under domestic law, the principles and references contained therein regarding intangible transactions are likewise implicitly applicable in Romania.

Legal ReferenceLaw no. 227/2015 regarding the Fiscal Code, as latest amended (Title I, Chapter IV, Art. 11, para. 4)

Romanian legislation does not include specific guidance on transactions involving HTVI but expressly refers to the OECD TPG in this respect. As the OECD TPG are recognized as applicable under domestic law, the principles and references contained therein regarding transactions involving HTVI are likewise implicitly applicable in Romania.

Legal ReferenceLaw no. 227/2015 regarding the Fiscal Code, as latest amended (Title I, Chapter IV, Art. 11, para. 4 )

Romanian legislation does not include specific guidance on services transactions but expressly refers to the OECD TPG in this respect. As the OECD TPG are recognized as applicable under domestic law, the principles and references contained therein regarding services transactions are likewise implicitly applicable in Romania.

Legal ReferenceLaw no. 227/2015 regarding the Fiscal Code, as latest amended (Title I, Chapter IV, Art. 11, para. 4)

The local legislation does not provide specific rules or a clear definition regarding low value-adding intra-group services. In particular, the legislation does not recognize the application of the simplified approach outlined in Section D.2 of Chapter VII on intra-group services. Consequently, all service transactions must be substantiated to demonstrate their arm’s length nature, either through the transfer pricing documentation file or as part of an advance pricing agreement, regardless of whether the services are considered high or low value.

Legal ReferenceLaw no. 227/2015 regarding the Fiscal Code, as latest amended (Title I, Chapter IV, Art. 11, para. 4)

Romanian legislation does not provide specific guidance on financial transactions but expressly refers to the OECD TPG in this regard. Since the OECD TPG are recognized as applicable under domestic law, the principles and provisions relating to financial transactions are implicitly applicable in Romania. Moreover, local legislation stipulates that any subsequent updates to the OECD TPG are also applicable. Accordingly, the newly introduced Chapter X on financial transactions has been applicable in Romania as of 2022.

Legal ReferenceLaw no. 227/2015 regarding the Fiscal Code, as latest amended (Title II, Chapter III^1 art. 40^2 European Directive 2016/1.164/UE)

Romanian legislation includes specific rules limiting interest deductibility, following the transposition of EU Directive 2016/1164 into domestic law. This directive establishes measures against tax avoidance practices that directly affect the functioning of the internal market, in line with the recommendations of BEPS Action 4.

Legal ReferenceLaw no. 227/2015 regarding the Fiscal Code, as latest amended (Title I Chapter IV Art. 11, para. 4)

Romanian legislation does not include specific guidance on cost contribution arrangements but expressly refers to the OECD TPG in this respect. As the OECD TPG are recognized as applicable under domestic law, the principles and references contained therein regarding cost contribution arrangements are likewise implicitly applicable in Romania.

Legal ReferenceOrder no. 442/2016 on conditions surrounding the amounts of transactions, submission of the transfer pricing file, content and conditions of requesting the preparation of the transfer pricing documentation file and application of transfer pricing adjustment/estimation procedure; Law no. 207/2015 on Fiscal Procedure Code, as latest amended (Title X, Chapter I, Art. 291^3)7; Order no. 3049/2017 regarding the country by country report content 8

• Master file consistent with Annex I to Chapter V of the TPG (selected)
• Local file consistent with Annex II to Chapter V of the TPG (selected)
• Country-by-country report consistent with Annex III to Chapter V of the TPG (selected)
• Specific transfer pricing returns (separate or annexed to the tax return) (not selected)
• Other (specify): (not selected)

Legal ReferenceOrder no. 442/2016 on conditions surrounding the amounts of transactions, submission of the transfer pricing file, content and conditions of requesting the preparation of the transfer pricing documentation file and application of transfer pricing adjustment/estimation procedure (Art. 2, 4, 5 para. 4); Law no. 207/2015 on Fiscal Procedure Code, as latest amended (Title X, Chapter I, art. 291^3, para. 1)

While the legislation does not explicitly refer to the “Master File” and “Local File,” the required content of the transfer pricing documentation is fully aligned with the OECD Transfer Pricing Guidelines (OECD TPG) and the EU Joint Transfer Pricing Forum (JTPF) guidance. The TP file is required for all taxpayers in case of a tax audit, for transactions over the threshold set in the legislation. For large taxpayers whose transactions exceed the specified threshold, the transfer pricing file must be prepared annually and submitted by the corporate income tax return deadline. For small and medium size taxpayers whose transactions exceed the specified threshold, the TP file must be prepared only at the request of the tax audit team. All documents must be prepared in the Romanian language.

Legal ReferenceLaw no. 207/2015 on Fiscal Procedure Code, as latest amended - art. 336, para. 1 e), para. 2 c

Romanian legislation provides a penalty of 2.000 RON - 3.500 RON for small and medium taxpayers and a penalty of 12.000 RON - 14.000 RON for large taxpayers for not complying with transfer pricing documentation requirements.

Transfer pricing documentation exemptions are granted exclusively on materiality grounds, as follows: For transactions not exceeding the lower thresholds (EUR 50,000 for interest and services, and EUR 100,000 for tangible and intangible goods), taxpayers are not legally obligated to prepare transfer pricing documentation.

Legal ReferenceLaw no. 207/2015 on Fiscal Procedure Code, as latest amended art. 52 and art. 282; Order no. 3735/2015

Unilateral, bilateral, and multilateral APAs may be issued. Bilateral and multilateral APAs are available only for transactions involving taxpayers that are residents of countries with which Romania has concluded double taxation treaties. As of June 2025, APA rollback procedures have been introduced. An APA may be granted for a maximum period of five years, both for the future as well as for the past.

• Rulings (selected)
• Enhanced engagement or cooperative compliance programmes (not selected)
• Advance Pricing Agreements (APA) (selected)
• Unilateral APAs (selected)
• Bilateral APAs (selected)
• Multilateral APAs (selected)
• International Compliance Assurance Programme (ICAP) (not selected)
• Mutual Agreement Procedures (selected)
• Other (please specify): (selected)

Romania has not implemented yet the Streamlined Approach for Baseline Marketing and Distribution Activities (Amount B) into its domestic law or its administrative guidance but is committed to accepting the outcome of applying Amount B to baseline marketing and distribution activities in covered jurisdictions with which Romania has a Double Tax Agreement.

Legal ReferenceLaw no. 207/2015 on Fiscal Procedure Code, as latest amended - art. 40^2

Romanian legislation has implemented the provisions of the European Directive 2016/1.164/UE for laying down rules against tax avoidance practices that directly affect the functioning of the internal market, as a consequence of BEPS Action 4.

Legal ReferenceOrder no. 1802/2014, Appendix 1, Section 2.4

Romanian legislation requires taxpayers to adhere to the arm’s length principle. Consequently, if the results of the transfer pricing analysis deviate from this principle, voluntary year-end transfer pricing adjustments should be made to ensure compliance.

Romanian legislation does not contain specific rules regarding secondary adjustments.

Legal ReferenceLink to official Romanian Tax Treaties: https://static.anaf.ro/static/10/Anaf/AsistentaContribuabili_r/Conventii/Conventii.htm

Romania currently has 88 tax treaties covering 89 jurisdictions that contain the version of Article 7 of the OECD Model Tax Convention on Income and on Capital, as it read before 2010.

• Article 7 as it read before 2010. (selected)
• Article 7 as it reads after 2010. (not selected)
• Other (please provide additional details) (not selected)

Legal ReferenceLaw no. 207/2015 on Fiscal Procedure Code, as latest amended (Art. 8, 36, 37); Link to official Romanian Tax Treaties: https://static.anaf.ro/static/10/Anaf/AsistentaContribuabili_r/Conventii/Conventii.htm

Romanian legislation provides specific regulation providing that the profits attributable to a permanent establishment are the profits that the permanent establishment might be expected to make if it were a separate and independent enterprise engaged in the same or similar activities under the same or similar conditions, taking into account the functions performed, assets used and risks assumed through the permanent establishment and through other parts of the enterprise. These provisions are consistent with the Authorised OECD Approache for the attribution of profits to PEs.

Legal ReferenceLaw no. 207/2015 on Fiscal Procedure Code, as latest amended (art. 36, 37)

The taxable result of a permanent establishment is determined by treating it as a distinct and independent entity and by applying transfer pricing rules to establish the arm’s length value of transactions between the foreign legal entity and its permanent establishment. In determining the arm’s length value of such transactions, reference is made to the provisions of the 2010 OECD Report on the Attribution of Profits to Permanent Establishments.