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Evolutions and tendencies regarding the Romanian transfer pricing legislation: is there a need for change?

Author

Listed:
  • Ioana NEACSU

    (Bucharest University of Economic Studies, Romania)

  • Liliana FELEAGA

    (Bucharest University of Economic Studies, Romania)

Abstract
In the context of internationalization and globalization of businesses an important attention has been paid to the transfer pricing legislation. Moreover, starting with 2016 Romania has adopted new transfer pricing regulations which have a significant impact on the groups of companies. Therefore, one of the objectives of our research was to analyse the Romanian transfer pricing legislation in order to capture an evolution of it. To achieve this objective we performed a comparison between Order 222/2008 and Order 442/2016. Other objectives of the research were to capture the perception of the tax specialists about the transfer pricing subject and the Romanian related legislation, especially about the new regulations and to identify if there is necessary a change in the Romanian transfer pricing legislation. To achieve these two objectives, the main investigative tool used was a questionnaire distributed to members of the Romanian Chamber of Tax Consultants. The collection of the information based on questionnaire was conducted in the period 11 – 27 June 2016. The study’s results show that the Romanian transfer pricing legislation contains some efficient regulations, but however it needs some changes which would contribute to a better prevention of the base erosion and profit shifting between multinationals and which would avoid any misunderstandings and possible disputes between taxpayers and tax authorities.

Suggested Citation

  • Ioana NEACSU & Liliana FELEAGA, 2017. "Evolutions and tendencies regarding the Romanian transfer pricing legislation: is there a need for change?," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 15(145), pages 1-65, February.
    • Handle: RePEc:aud:audfin:v:15:y:2017:i:145:p:65
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    References listed on IDEAS

    as
    1. Theresa Lohse & Nadine Riedel, 2013. "Do Transfer Pricing Laws Limit International Income Shifting? Evidence from European Multinationals," CESifo Working Paper Series 4404, CESifo.
    2. Peralta, Susana & Wauthy, Xavier & van Ypersele, Tanguy, 2006. "Should countries control international profit shifting?," Journal of International Economics, Elsevier, vol. 68(1), pages 24-37, January.
    3. Theresa Lohse & Nadine Riedel & Christoph Spengel, 2012. "The Increasing Importance of Transfer Pricing Regulations – a Worldwide Overview," Working Papers 1227, Oxford University Centre for Business Taxation.
    4. Sansing, Richard, 2014. "International Transfer Pricing," Foundations and Trends(R) in Accounting, now publishers, vol. 9(1), pages 1-57, December.
    5. Keuschnigg, Christian & Devereux, Michael P., 2013. "The arm's length principle and distortions to multinational firm organization," Journal of International Economics, Elsevier, vol. 89(2), pages 432-440.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Lupu Mihai, 2024. "Transfer Pricing in the Post-BEPS Era: the BEPS Package, as a Tool in Helping Tax Authorities Prevent Aggressive Tax Optimization in a Specific Sector. Case Study: the IT Industry in Romania," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 18(1), pages 142-153.

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    More about this item

    Keywords

    Transfer pricing; legislation; change; Romania; Order 442/2016;
    All these keywords.

    JEL classification:

    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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