New rules for persons who perform transactions worth over 20m lei

04.05.2023 06:20
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The persons who will conclude transactions to the total value of 20 million lei or more during a fiscal period are obliged to present information about the transfer prices. If the value is equal to 50 million lei or is higher, the persons will need to also present the file concerning transfer prices. Provisions about the concept of transfer pricing were added to the fiscal legislation and will be applied starting with January 1, 2024, IPN reports.

In a press release, the Ministry of Finance said that by the law to amend a number of normative documents (fiscal and customs policy for 2023), the Tax Code was supplemented with a new chapter – Chapter 112: Special rules when determining transfer prices.

More exactly, the principle of transfer pricing provides that the taxpayer who performs transactions with affiliated persons to a total value that is equal to or higher than 20 million lei during a fiscal period, calculated by adding up the value of the transactions concluded with all the affiliated persons, without VAT, is obliged to compile and present a report on transfer prices. If the value of transactions is equal to or higher than 50 million lei, the persons will also present the file concerning transfer prices besides the given report.

For the business community to be prepared to apply this mechanism, aspects of the concept of transfer pricing and businesses’ proposals to improve its implementation, including based on international experience, were discussed on the platform of working group No. 2 – Implementation of the concept of transfer pricing – that was constituted at the Ministry of Finance.

The secretary of state of the Ministry Olga Golban said the application of transfer prices is a topical subject that is of interest to the Ministry and to businesses and the implementation of this concept will be considered in the meetings of the working group so as to obtain a general picture and to eliminate all the constraints and the rules are clear when the provisions on transfer pricing take effect.

The introduction of the concept of transfer pricing in the Moldovan fiscal legislation is necessary for approximating the EU practice in the process of joining the EU.