S.C. X S.R.L. is engaged in “Manufacture of electronic sub-assemblies (modules)”, CAEN code 2611.
Period audited: 01.01.2019-31.12.2021 taxable income.
The main findings of the tax inspection authorities were:
Following the tax inspection action, it was found that S.C. X S.R.L. carried out transactions with affiliated companies during the verified period 01.01.2019 – 31.12.2021, representing purchases and deliveries of goods, provision of services, interest payments.
Based on the financial statements and information provided by the taxpayer, the tax inspection authorities proceeded to identify the transactions with affiliates, as well as to analyze their nature/amount.
It was found that the total annual value of transactions recorded by the company with related persons exceeds the value of the materiality threshold set for large taxpayers in Art.2 para. (1) of the OPANAF no. 442/2016 on the amount of transactions, deadlines for the preparation, content and conditions for requesting the transfer pricing file and the procedure for adjusting the estimated transfer prices.
Thus, the tax inspection authorities proceeded to adjust the taxable operating expenses (for production activity) in order to obtain a profitability (net mark-up) at the median value of the selected indicator, calculated for comparable independent companies, on the basis of Art. 7 (1), Art. 9 of Order No. 442 of 22 January 2016 on the amount of transactions, deadlines for drawing up, content and conditions for requesting the transfer pricing file and the procedure for adjusting the estimated transfer prices, profitability indicator established by the company through the Transfer Pricing File 2021 “X RO S.R.L. Comparability study drawn up for the contracted production activity”.
Source: ANAF