The Influence of Accountancy Data on the Transfer Pricing Policy in Romania

• Author: Luca M. P. - Ciocanea B. C. - Pitu I. C.
• Position: Lucian Blaga University of Sibiu - Lucian Blaga University of Sibiu - Lucian Blaga University of Sibiu
• Pages: 93-102

Bulletin of the Transilvania University of Braşo v

Series V: Economic Sciences • Vol. 12 (61) No. 2 – 2019

https://doi.org/10.31926/but.es.2019.12.61.2.12

THE INFLUENCE OF ACCOUNTANCY DATA ON

THE TRANSFER PRICING POLICY IN ROMANIA

M. P. LUCA1 B. C. CIOCANEA2 I. C. PITU3

Abstract: When adopting the transfer pricing policy, tax affects not only

the company, but also the main indicators of performance, cash flow and

business strategy. Through the transfer pricing policy, which is actually a

commercial policy of the company in relation to related parties, methods for

determining prices in the future are established, related party transactions,

complying with the principle of market value. This article also presents

practical elements on the harmonization and fiscal accounting principles in

the field of related party transactions, so as to ensure a better management

of tax risk. Also, it seeks cla rification of conceptual and practical aspects of

transfer pricing, welcome for financial accounting professional knowing that

the tax authorities have rised the number of controls in this area.

Key words: jointy, pricing transfer, the principle of market value, the file

containing the transfer pricing, the principle of market value, the file

containing transfer pricing

1. Introduction

In the economic legislation, as well as in the fiscal one from Romania, the principle of

market value was introduced beginning with the year 1994 and it is going to be applied

to all transactions between jointies, namely transactions between companies joint in the

same group, including the ones going onward between a foreign business com pany and

its permanent headquarters in Romania.

The concept of transfer pricing, principles and market pricing methods, as well as the

guidance for taxpayers and tax administrations come from the Organization from

Economic Co-operation and Development (OECD).

In the international legislation, the following are considered to be relevant in what

concerns transfer pricing:

- Framework Convention for the Avoidance of Double Taxation

- Code of Conduct on transfer pricing

1 Lucian Blaga University of Sibiu, mihaluca2006@yahoo.com

2 Lucian Blaga University of Sibiu, sb19biu@gmail.com

3 Lucian Blaga University of Sibiu, cosmin_pitu@yahoo.com