New rules apply now for fiscal year 2021
The globalization of business, the evolution of OECD guidelines and the increasingly heated discussion of aggressive tax planning schemes have led to a very thorough review of national legislation on transfer pricing that have been anchored since 2001 to already very impractical rules and procedures.
Ordinance No. 268/2021 of November 26 revises the regulation of transfer pricing, of which some amendments are highlighted, which we list here:
1. REVIEW OF CRITERIA FOR DISPENSING FROM DOSSIER ORGANIZATION
- Entities which, in the period to which the obligation relates, have reached a total annual amount of income of less than EUR 10 million (Article 17(3) shall be exempted from the documentation procedure (main dossier and specific dossier).
- Even if the previous limit is exceeded, the exemption will apply to linked transactions whose value in the period has not exceeded EUR 100,000 and, as a total, EUR 500,000, taking into account their market value (Article 17(5).
2. RESTRUCTURING OF THE DOSSIER
- Entities which are classified as small or medium-sized enterprises and are not accompanied by the Large Taxpayers Unit, when not covered by the previous exemptions, shall have a simplified dossier of documentation (Article 19).
- Express provision of a double structure translated into the preparation and maintenance of a Master File and a Specific Dossier (Local File), in the wake of international recommendations (Article 17(8, 9 and 11) and Annexes I and II).
3. OTHER CHANGES
- Definition of validity for comparability studies (Article 17(12);
- Further clarification on content and annexes on cost-sharing agreements (Article 18(2) and Annex III) and shared services (Article 18(3) and Annex IV);
- Correlative adjustment procedure in case of correction of profits between associated companies (Articles 20 to 25).