June 30, 2009 Bucharest - Ro.Tax.Law, international taxation and legislation forum

Ro.Tax.Law forum approached hot topics in the field of financial and legal business environment in Romania. Top investors, bankers, experts in legal and financial issues debated on new requirements and changes of the Romanian legislation.

Audience gathered representatives from government, local and regional authorities, top managers, investors and consultants, representatives of the largest law firms, consulting companies, media representatives.

Luminita Ristea, Managing Partner of Consulting R Group, discussed about transfer pricing – reality of European commercial integration or target of tax inspections.

It is estimated that more than 60% of world trade takes place through multinational companies. This means transactions with many zeros and related taxes reaching impressive amounts

Thus, the transfer pricing issue is of great interest for multinational companies. Intra-company transaction prices politics can have significant effects on the fiscal costs (penalties or double taxation), also on the profitability and competitive advantage of companies of any size that have international activity

Transfer pricing issue is regulated at international level by The Transfer Pricing Guidelines for Multinational Enterprises and Tax Administration, the The Convention for the Avoidance of Double Taxation and the Code of Conduct on transfer price

The Romanian legislation in this matter is represented by the Fiscal Code Art.no.7 (definition of the related parties), art. no. 11 (market prices in transactions between related parties), Fiscal Procedure Code art. no. 42 (settlement of tax scenarios), art. no. 79 - para. 2 (obligation of preparing and presenting the transfer pricing file to competent authorities), Decision no.529/2007 (regulation for the advanced price agreement), OP ANAF 222/2008 (content of transfer pricing file).