According to the Romanian Labour Code, fixed-term employment agreements can only be legally concluded in certain situations. In practice, a fixed-term employment agreement differs in many ways from the agreement concluded for an indefinite period, which is the rule in Labour Law.
The idea of converting an employment agreement into a fixed-term instrument, even if the employee agrees to such conversion, is considered by specialists as contrary to the law. In fact, employees may denounce this operation in court, all the more if they were forced by the employer to accept the agreement change. However, there are situations where changing an agreement this way can be considered lawful.
Directive 2001/23/EC which stipulates this matter at EU level was transposed into national legislation by Law No. 67/2006 on the protection of employees' rights in case of transfer of undertakings, businesses or parts of undertakings or businesses and the Labor Code.
Aside from its mandatory nature - the transfer pricing documentation file is the document that justifies before the tax authority why a certain price for a given transaction was chosen - the file can be seen as a tool for an effective management of financial flows.
Therefore, in order for the file to contain every detail requested by the tax authorities, the following steps should be followed:
The transfer pricing documentation file must be submitted by March 25th, 2017, which is the deadline for filing the corporate tax return, or by the deadline set for companies that apply any tax year other than the calendar year.
The file has to be prepared and presented according to ANAF Order No. 442/2016 on the amount of transactions, submission deadlines for the transfer pricing documentation file, the content and conditions of requesting the preparation of a transfer pricing documentation file, and the transfer pricing adjustment/estimation procedure.
It is important to note that the interpretation of this Order by tax authorities is that, in case of a tax audit, if the file is requested for the past three years, companies must update the file according to the Order for the entire audited period, which is basically a retroactive application of the document. With audited companies, the deadline for meeting legal requirements is usually 30 to 60 days.
The changes recently proposed by the Ministry of Public Finance (MPF) in relation to the Tax Code and the Tax Procedure Code were passed by the Romanian Government on November 16th, 2016; the Emergency Ordinance is to be published in the Official Gazette, but the Executive has not yet released any statement as to whether the proposed version of the legislative project has been adjusted. The project was initiated by MPF earlier this month, and its beneficiaries are both companies and individuals. The new provisions should be applied from January 1st, 2017.