Journal of Accounting and Management Information Systems (JAMIS)

Legal regime of advance pricing arrangement as reflected in the Romanian fiscal legislation

Supp/2006 ,   p755..762

Silvia Lucia CRISTEA

Keywords:   advance pricing arrangement, affiliated person, Fiscal Code, Code of Fiscal Procedure


At international level there had been many attempts to define the transfer price and to regulate it, mainly because in commercial transactions within the enterprise, the multinational groups of companies influence their profits for the purpose of minimizing their fiscal obligations.

Within this effort there are integrated the international rules which regulate the transfer pricing, rules that are elaborated by the Organization for Economic Cooperation and Development (OECD).

For the purpose of assimilating the rules of OECD into the national legislation, the Romanian Fiscal Code and the Code of Fiscal Procedure contain legal provisions on transfer price.

This study analyses, on one hand, the definition of the transfer price, the definition of affiliated persons, the estimation methods for transactions between affiliated persons (inside the enterprise), as they are to be found in the Romanian Fiscal Code.

On the other hand, the study presents and explains the recent provisions concerning the advance pricing arrangement as fiscal administrative act issued by the Public Finances Ministry. This act must solve the request of a tax-payer concerning the conditions and the methods according to which the transfer prices will be determined in the case of transactions between affiliated persons as provided by the Romanian Code of Fiscal Procedure.