Extract from the Order of the Ministry of Finance 9/2024

Extract from the Order of the Ministry of Finance 9/2024 on the approval of rules for the implementation of transfer prices.

Pre-audit

Taxpayers who do not have the obligation to compile and submit transfer price dossiers, at the request of the State Tax Service, are required to provide the following information and documents:

1. Taxpayer information:
   • a) organizational, legal and operational structure of the taxpayer;
   • b) list of affiliated persons, including branches/permanent representative offices and their identification data, geographical location of affiliated persons;
   • c) clarification of direct and indirect affiliate relations of the taxpayer participating in the transactions.
2. information about the main markets for supplies;
3. information about main competitors;
4. information about payments made and received under controlled transactions;
5. agreements/contracts related to concluded controlled transactions;
6. documents and accounting information of the taxpayer;
7. other information, legal acts, documents that served as the basis for concluding controlled transactions.

The transfer pricing dossier (Local dossier)

must contain the following data and documents:

1) information about the taxpayer:

• a) the organizational, legal and operational structure of the taxpayer who is entrusted with the responsibility for compiling a transfer price dossier;
• b) list of affiliated persons, including branches/permanent representative offices and their identification data, geographical location of affiliated persons;
• c) clarification of direct and indirect affiliated connections of the taxpayer participating in the transactions, starting from the period for which the transfer price file was compiled, indicating the changes that have occurred.

2) a general description of the taxpayer/payer’s activities, business strategy, including changes in business strategy since the period for which the transfer price dossier was compiled, a presentation of the main markets for supplies, including a description of the taxpayer’s research/development activities, if any ;

3) main competitors;

4) a description of the transactions carried out with each affiliate and the context in which they are carried out, including:

• a) description of the object of the transaction, including physical characteristics, quality, country of origin and manufacturer, presence of a trademark and other information related to the characteristics of the object of the transaction;
• b) a description of transactions related to possible business restructuring during the period for which the transfer price file is compiled;
• c) a description of transactions consisting of intra-group services, respectively a presentation of the distribution of costs, depending on the circumstances, with the individualization of services that significantly and definitively contribute to the creation of added value;
• d) description of transactions relating to cost reimbursement agreements;

5) information on payments made and received under controlled transactions involving the taxpayer who is responsible for compiling a transfer price dossier;

6) copies of all agreements/contracts related to controlled transactions concluded by the taxpayer who is responsible for compiling a transfer price file;

7) functional analysis and detailed analysis of the comparability of the taxpayer, who is responsible for compiling the transfer price dossier, and the audited person who is a party to controlled transactions, including a description of the reasons in the case of conducting an analysis over several years;

8) description of the method for establishing the transfer price for each transaction and justification of the criteria for its selection;

9) in the case of methods for establishing transfer prices that involve the choice of the person being verified, a justification for such choice is provided;

10) description of selected comparable uncontrolled transactions (internal and/or external), if any, and information on financial and economic indicators of profitability or margin/result/price of relevant transactions of independent companies on which the transfer pricing analysis is based, including a description methodology for searching for analogues and the source of this information;

11) calculation of the range of comparable prices;

12) a description of any comparability adjustments made and an indication of the adjustments made based on the results of the audited party and/or for comparable uncontrolled transactions;

13) a description of the reasons why it was concluded that the transfer prices of the relevant transactions were determined on an arm's length basis based on the application of the selected transfer pricing method;

14) copies of information, legal acts, documents that served as the basis for controlled transactions;

Model of information on transfer prices - Annex 2

The template consists of two tables and two appendices as follows:

• Table 1 – contains information about the taxpayer, namely: the name of the taxpayer, the tax code, the main type of activity, the code of the main type of activity as well as the fiscal period for which the information is presented.
• Table 2 – contains data on the name of the affiliated party part of the controlled transaction, the fiscal identification number, the name of the state, the state code and the total amount of the controlled transactions will be indicated.
• Annex A – contains information about the company's affiliation with other organizations.
• Annex B – contains information on controlled transactions, such as: the transaction code, the description of the object of the transaction, the code of the part of the contract, the code of the transfer pricing method, the tested part, the code regarding the margin and the economic-financial indicators of profitability, the value of the transactions (inputs and outputs recognized as procurements and respectively as deliveries of goods and/or services according to the accounting records), etc.