Tax alert – Advance price agreement and mutual agreement procedure

On July 24, 2025, the Romanian authorities published Ordinance no. 11/2025 in Official Gazette no. 695, introducing amendments to Law no. 207/2015 on the Fiscal Procedure Code.

The most significant legislative changes are as follows:

Advance price agreement 

The possibility is introduced whereby a taxpayer who concludes an advance pricing agreement may request the extension of the retroactive validity of the agreement for transactions carried out in previous years (up to 5 fiscal years concluded prior to the year in which the application was submitted), if these were carried out under conditions similar to those in the future.

If there is an ongoing tax inspection covering the taxes and periods subject to the advance price agreement request, the tax authorities may decide to suspend the tax inspection in question.

These amendments also apply to pending requests for the issuance of advance pricing agreements.

Mutual agreement procedure

Amendments are made to Article 282 of Law 207/2015, which facilitates the settlement of tax disputes at international level, by adapting the mechanisms agreed in double taxation avoidance treaties.

The purpose of these amendments is to reduce the risk of tax disputes and double taxation in the case of Romanian taxpayers with economic activities carried out internationally, as well as aligning with OECD standards.

The affected person must submit the request no later than 3 years from the date of communication of the fiscal administrative act or notification that generated the double taxation, or within the time limit provided by the applied convention.

If N.A.F.A. cannot resolve the case unilaterally, it will take steps with the competent authority of the other state, participating in bilateral negotiations. This is also valid in the situation where the competent authority of the state with which Romania has concluded the respective double taxation agreement requests it to carry out the mutual agreement procedure.

If the amicable negotiations fail, arbitration proceedings may be initiated, subject to the agreement of the other state.

The provisions also apply to mutual agreement procedure in the process of being resolved, regardless of their stage.

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