FISCAL PROCEDURE CODE AND REGULATIONS REGARDING TRANSACTIONS WITH AFFILIATES

Enea Constantin, Enea Constanta Author-Workplace-Name: “Constantin Brancusi” University of Targu-Jiu, Faculty of Low, “Constantin Brancusi” University of Targu-Jiu, Faculty of Economics and Business Administration

Annals - Economy Series, 2012, vol. 1, 194-199

Abstract: : In determinate the transfer prices, The Romanian Procedural Fiscal Code stipulates (in the 79 th article) the obligation for those contributors who make transactions with related entities to draw up a record of transfer prices and to forward it to the tax administrations (at their request). Currently, the UE member states seek harmonization of tax legislation, with the aim of creating a common tax base. An important effect of the common base would be giving up the requirement for compiling a transfer price record, because the realization of income in a member state shall be associated with expenses in the state where the affiliate is located. In Romania, the guidelines on transfer pricing developed by the OECD have been assimilated into the domestic tax regulations (although our country is not yet a member of OECD), in order to harmonize these regulations in the Community. The main effect globalization has on transfer prices is increasing their complexity, as, in fact, economic globalization is reason for the existence of transfer pricing. With the increasing complexity of this area, states are forced either to improve legislation, or to create it, in order to ensure the growth of states income taxes.

Keywords: Globalization; Transfer pricing; Transfer pricing record; “Arm’s length” Principle; Tax authorities; ANAF (search for similar items in EconPapers)
Date: 2012
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