November 02, 2017 | Tax, Tax Alert


Tax Alert 13 | Review of transfer pricing regulation

  • was published to Ordinance No. 268 / 2021, of 26 November, which reviews transfer pricing regulations. This review follows the changes already introduced in article 63 of the Corporate Income Tax Code, with regard, in particular, to the scope of application of the principle of arm's length and the adoption of the most appropriate method in the determination of transfer pricing, and, by on the other hand, it welcomes the latest developments resulting from the work of the OECD in this field.

    Planned changes include:

    • Restructuring of the organization of the documentation process, with the express provision of a double structure translated into the preparation and maintenance of a Main File (Master File) and a Specific Dossier (Location File);
    • Increase in limits that dispense with the organization of the documentation process, which now meet a duality of criteria: annual amount of income (only entities with income equal to or greater than 10 million euros) and amount of related operations;
    • Simplification of the transfer pricing documentation process for small and medium-sized entities;
    • Commitment to adopting best international practices, reiterating the recommendation that the guidelines contained in the OECD reports that develop this matter be followed.

    The Ordinance enters into force on the day following its publication, but some provisions (chapter IV) are expected to take effect for tax periods beginning on or after January 1, 2021.

    It was also published to Ordinance No. 267 / 2021, of November 26, which revises the regulation of the procedures for entering into prior agreements on transfer pricing


[This document is for information purposes only and does not dispense with the analysis of the legislation and assessment of its applicability to each specific situation. Therefore, we are not responsible for any decision made based on this information.]