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Transfer Pricing – Review of the criteria for dispensing and restructuring the dossier

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).
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