The Romanian National Agency for Fiscal Administration (ANAF) is conducting a large-scale data collection initiative until the end of August 2025, targeting more than 2,700 large and medium taxpayers in Romania. The effort focuses on identifying potential profit-shifting risks related to intragroup transactions. Romanian taxpayers are required to report their inbound transactions involving services, royalties and financing over the period 2020–2024 to an unprecedented level of detail by specific transaction type and year, in addition to contrasting intercompany and third-party flows.

According to the ANAF, this initiative aims to enhance the ANAF's fiscal risk-assessment capabilities and promote fair and transparent tax compliance in Romania. This initiative does not constitute a formal tax audit or impose immediate tax liabilities but has raised some tax procedural concerns among taxpayers.

Some tax procedural aspects to consider

In a recent official communication, the ANAF clarified that the collected data will be used solely for analytical purposes to support fiscal risk analyses.

Although public communications from the ANAF do not mention potential sanctions for failing to comply with the transfer pricing information requests, based on the legal provisions indicated as the basis for the tax authority's requests, applying sanctions in the event of noncompliance cannot be ruled out. Applicable entities should continue monitoring official updates on the topic.

Additionally, regardless of the extent to which taxpayers receive formal requests as outlined above, the increased attention that the ANAF gives to transfer pricing and intragroup transactions serves to indicate potential risks and likely areas of interest for tax authorities in future tax inspections.

What does this initiative mean for you?

Multinational enterprises (MNEs) operating in Romania should proactively review their intercompany flows, transfer pricing practices and positions and transfer pricing documentation to help ensure their readiness for increased transparency and the ANAF's focus in targeting inbound intragroup services, royalties and financing. Factors to consider include:

• The ANAF often reserved special attention for intragroup service purchases by Romanian taxpayers, frequently scrutinizing these purchases in general tax audits or transfer pricing audits in Romania over the past years. Key considerations for MNEs operating in Romania include substantiation of benefits derived, transparency and traceability of the transactions flows, proof of rendering and related transfer pricing policies.
• The ANAF has increased its scrutiny of intragroup royalty transactions during transfer pricing audits over the past years and this new data-collection initiative further confirms that these transactions will remain a focus area for the foreseeable future. Key considerations in this regard include being able to demonstrate the existence and use of the licensed rights, the economic substance of the transaction and why the royalty charges are appropriate in how they were determined based on the arm's-length principle.
• Although ANAF transfer pricing audits have not historically focused in particular on scrutinizing intercompany loans, the situation has clearly changed. Financing transactions now are systematically flagged in the ANAF's risk-evaluation system, routinely addressed via audit questionnaires and subject to deeper technical transfer pricing challenge during audits, including borrower creditworthiness and debt reclassification risks (that may trigger both corporate income tax and withholding tax consequences).

Implications

Although the ANAF initiative serves the intended aim of risk assessment, it also marks a need for Romanian taxpayers to start an internal review and readiness assessment with the expected level of transparency and to take the necessary actions to be able to (1) report the data to the required level of detail and insight, (2) address any significant risk areas identified via the risk assessment and (3) prepare to withstand more-intense scrutiny of inbound intragroup services, royalty transactions and financing during future tax and transfer pricing audits.

Affected entities should consult their tax advisors for assistance and help answering any further inquiries.