The Romanian tax authority launches a data collection campaign on intra-group transactions

The Romanian tax authority launches data collection campaign on intra-group service transactions, royalties and financing, with a focus on identifying profit shifting risks. The process is framed as a less intrusive exercise to obtain information compared to tax audits or transfer pricing documentation requests and is intended to complement existing data within the tax administration, which currently lack the necessary granularity for such type of assessment.

In the context of an increased interest into intra-group inbound transactions from the tax authorities and the general public, Multinational enterprises (MNEs) operating in Romania are advised to perform an internal review and risk assessment, enhance their transfer pricing documentation and proactively address identified risks regarding such transactions under spotlight.

The Romanian National Agency for Fiscal Administration (ANAF) is conducting a large-scale data collection initiative up to end of August 2025, targeting over 2,700 large and medium taxpayers in Romania. The effort focuses on identifying potential profit shifting risks related to intra-group 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, year and also contrasting intercompany vs. third party flows.

According to ANAF, this initiative aims to enhance 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 in the same time has raised some tax procedural concerns among taxpayers.

Certain tax procedural aspects to consider

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

Although public communications from ANAF do not refer to potential sanctions for failing to comply with the aforementioned requests, based on the legal provisions indicated as the basis for the tax authority's requests, the application of sanctions in the event of non-compliance cannot be ruled out. It is recommendable to continue monitoring official updates on the topic.

Additionally, regardless of the extent to which taxpayers receive formal requests as outlined above, the increased attention given by ANAF to transfer pricing and intra-group transactions serves as a serious indicator of potential risks and areas of interest for tax authorities in future tax inspections.

What does this initiative mean for you?

MNEs operating in Romania are encouraged to proactively review their intercompany flows, transfer pricing practices and positions and transfer pricing documentation to ensure readiness for such increased transparency and focus of ANAF targeting inbound intra-group services, royalties and financing: 

• Special attention was often reserved for intra-group service purchases of Romanian taxpayers, as these were frequently scrutinized in general tax audits or transfer pricing audits in Romania over the past years.  Substantiation of benefits derived, transparency and traceability of the transactions flows, proof of rendering and related transfer pricing policies are key aspects to be considered by MNEs operating in Romania.
• ANAF increased their scrutiny over intragroup royalty transactions during transfer pricing audits over the past years and this initiative also confirms a focus area in this respect for the future. Support of existence and use of the licensed rights, the economic substance of the transaction and the appropriateness of the royalty charges with the arm’s length principle are key aspects in this area.
• While scrutiny of intercompany loans was not on the radar of ANAF as particular focus area for transfer pricing audits for many years in the past, the situation has clearly changed. Financing transactions are now systematically flagged in ANAF’s risk evaluation system, routinely addressed via audit questionnaires, and are 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).

While the initiative from ANAF certainly serves the intended aim of risk assessment, it also clearly 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 report the data to the required level of detail and insight, to address any significant risk areas identified via such assessment and strengthen its defence to withstand more intense scrutiny of inbound intra-group services, royalty transactions and financing during future tax and transfer pricing audits.

The EY team is available for any further inquiries regarding the aspects presented above.