Companies paying corporate income tax must report and pay their taxes for the tax year 2023 by June 25 at the latest. In addition, if they also fall into the category of large taxpayers, companies will have to be ready by this date, and the transfer pricing file. The June 25 deadline is equally important for micro-enterprises, given that they also have to finalize their taxes for the last quarter of 2023 by then, thus closing their previous financial year.

In 2024, the deadline for filing and paying business taxes for the previous year is June 25. This is the third consecutive year in which this single date is applied for closing the fiscal year, it being temporarily introduced by GEO 153/2020 on recapitalizations. The deadline covers both the annual profit tax for 2023 and the micro-enterprise income tax for the 4th quarter of last year.

Normally, the deadline for these tax obligations was March 25, but it has been moved to the period 2021-2025, to allow companies to apply the tax facilities offered to increase their own capital.

The single deadline of June 25 is generally valid for most companies, even if they do not increase their capital, the only categories exempted from it are organizations subject to the accounting regulations issued by the National Bank of Romania and the Financial Supervisory Authority, such as banking institutions and insurance.

Income tax reporting is done in last year’s returns and large companies must also prepare their transfer pricing files

In an announcement published in March, ANAF confirmed that for the reporting of profit related to 2023, updated forms 101 will not be issued, so companies can use the statements used in the previous fiscal year and which are already available on the institution’s website.

Apart from the reporting and payment of the profit tax for 2023, the companies classified by ANAF in the category of large taxpayers have, also until June 25, the obligation to prepare the annual file of transfer prices, if they carry out intra-group transactions (i.e. operations with affiliated parties) that exceed any of the thresholds:

• EUR 200,000, for interest received or paid related to financial services (at the exchange rate transmitted by the BNR for the last day of the fiscal year);
• EUR 250,000, for operations related to services rendered or received (at the exchange rate transmitted by the BNR for the last day of the fiscal year);
• EUR 350,000, for operations related to the purchase or sale of tangible or intangible assets (at the exchange rate transmitted by the BNR).

The total annual value reported at the significance thresholds is the one obtained by summing up the value of transactions with all affiliated persons (excluding VAT).

Large taxpayers who do not have their transfer pricing files ready by June 25 risk fines between 25,000 and 27,000 lei from the control authorities.

However, although the obligation to prepare the annual transfer pricing file is only for large taxpayers, for which intra-group transactions exceed the value thresholds described previously, the rest of the companies – medium or small, that carry out intra-group transactions must also be prepared in time with such a document, provided that tax inspectors can request them at any time, during a tax inspection, to justify that the prices charged with related parties comply with the market value principle.

For these types of companies, the obligation only occurs if the value of related party transactions is greater than or equal to one of the following limits:

• 50,000 euros, in the case of interest;
• 50,000 euros, in the case of services;
• 100,000 euros, in the case of transactions with tangible and/or intangible goods.

Therefore, any company that exceeds any of these materiality thresholds, regardless of its size, should prepare its transfer pricing file in advance in order not to be put in the position of presenting an incomplete or insufficiently documented file that leads, in case of fiscal control, to additional payment taxes, as well as interest and late penalties related to those amounts.

Article published in Business-Mark