Romania adopts new rules for advance pricing agreements

The National Authority for Fiscal Administration (“NAFA”) introduces an updated procedure for issuing and amending advance pricing agreements (APAs), including new rules on rollback APAs, annual monitoring and documentation requirements.

Published on 2 July 2026, NAFA Order 827/2026 approves the new procedure for issuing and amending advance pricing agreements APAs, as well as the content of the application and supporting documentation. The Order clarifies the procedural framework for unilateral, bilateral and multilateral APAs and introduces detailed requirements for APA applications, rollback requests and annual monitoring reports.

Key takeaways

• NAFA Order 827/2026 updates the Romanian APA framework and expressly covers the issuance and amendment of APAs, including their extension, renewal or revision upon the taxpayer’s request.
• The new rules apply to APA applications submitted as of the entry into force of the Order, while applications filed before remain subject to the rules in force at the filing date.
• Taxpayers may request a preliminary discussion with NAFA before filing an APA application.
• APAs may be issued for a maximum period of 5 years and, subject to specific similarity conditions, may also cover prior periods of up to 5 closed fiscal years.
• The documentation requirements for APA applications are significantly expanded, covering group and local entity information, functional analysis, tested party selection, comparability study, year-end adjustments and declarations on accuracy and absence of ongoing proceedings.
• APA beneficiaries must submit electronically through the Private Virtual Space an annual monitoring report on the compliance with the APA terms, and failure to timely submit the report may lead to cancellation of the APA for subsequent periods.

Scope of the new APA procedure

NAFA Order 827/2026 applies to the issuance and amendment by the central tax authority of APAs covering the conditions and methods used, or to be used, for determining transfer prices for transactions between related parties over a fixed period. Taxpayers registered with the Romanian tax authorities and carrying out transactions with related parties may request the issuance or amendment of an APA.

Separate applications are required, as applicable, for APAs covering future transactions and APAs covering prior periods. A standalone APA cannot be requested exclusively for a period prior to the filing date of the application.

The procedure also allows taxpayers that filed for a bilateral or multilateral APA to request its conversion into a unilateral APA at any stage of the process, with notification of the tax authority(ies) involved.

Rollback APAs and validity period

An APA may be issued for a maximum period of 5 years. In the case of future-transaction APAs or APA amendment applications, the APA may take effect starting with the fiscal year in which the application was filed, upon taxpayers’ request.

Where the transaction covered by a future APA was also carried out before the APA period, taxpayers may request an APA for a prior period of up to 5 closed fiscal years preceding the year in which the application is filed, provided that the specific similarity criteria are met.

Rollback eligibility is subject to a strict similarity analysis. The prior-period transaction must be similar in terms of object and functional analysis, involve the same related parties and be governed by contractual terms that do not differ significantly from those covered by the future APA.

Taxpayers that were subject to a completed tax audit covering corporate income tax for a period overlapping with the prior period for which rollback application is requested cannot file such an application.

Expanded APA application and documentation requirements

The APA application must include extensive information regarding the requested APA, the group, the Romanian taxpayer and the analysed transaction. This includes inter-alia the list of all intragroup transactions with each related party, year-end transfer pricing adjustments, relevant management positions, business restructurings, business strategy, R&D activities, functional and economic analysis. The Order also introduces detailed requirements for the comparability study.

The content of the APA application has also been aligned with the amendments introduced by NAFA Order 828/2026, published on 2 July 2026. For more details, see tax alert Romania adopts significant changes to its transfer pricing framework.

When an APA application may be rejected

The APA application may be rejected inter-alia if:

• the application and supporting documentation do not meet the minimum content requirements and the taxpayer does not provide the requested clarifications or documents within 60 business days from the tax authority’s request;
• an APA amendment request for extension, expansion or revision is not filed at least 30 days before the expiry of the previously approved APA; or
• the tax authority establishes, based on documented evidence, that the application and the submitted documentation contain inaccurate information or not consistent with reality, or that conceals a different factual situation.

For bilateral or multilateral APAs, the rejection is communicated to the taxpayer only after consultation and prior agreement with the relevant foreign tax authorities.

Annual monitoring and consequences of non-compliance

Taxpayers benefiting from a future-transaction APA must submit an annual report on the implementation of the APA terms and conditions by the statutory deadline for filing annual financial statements or annual accounting reports. The report must be submitted electronically through the Private Virtual Space, signed by the legal representative or authorised representative.

For APAs covering prior periods, the annual report must be submitted within 90 business days from the communication date of the order approving the APA and must be prepared for each fiscal year covered by the APA.

What taxpayers should do now

Given the more detailed procedural and evidentiary requirements, taxpayers considering an APA should assess as early as possible:

• whether the relevant transactions are suitable for an APA;
• whether sufficient evidence is available to support the proposed transfer pricing methodology, comparability analysis and critical assumptions; and
• whether prior periods could potentially be covered through a rollback APA, subject to the applicable similarity conditions and procedural limitations.

The EY team is available for further details regarding the above.