COLUN TAX – AMENDMENTS TO CONSTRUCTION TAX

In the Official Gazette of Romania, Part I, no. 300/04.04.2025, it was published the GEO no. 21/2025 amending Title X “Construction Tax” of the Fiscal Code Law no. 227/2015.

The most important amendments to the construction tax introduced by GEO no. 21/2025 include:

• The annual construction tax is calculated as follows:

• by applying a rate of 0.5% on the net value of the constructions, for which no building tax is due, existing in the taxpayers’ patrimony on 31^st December of the previous year;
• by exception, by applying a rate of 0.25% on the value of the constructions from contracts/other legal acts establishing rights of concession/use free of charge/rent, in the case of those belonging to the public/private domain of the state or administrative-territorial units, existing on 31^st December 31 of the previous year, for which no building duty is due; in this case, the tax is due by the taxpayers who have them under concession/use free of charge/rent.

• The net value of the constructions represents the value shown in the debit balance of the accounts corresponding to the constructions, from which the cumulative accounting value of their depreciation is deducted.

• Investments made by taxpayers in constructions free used/rented do not represent constructions if these investments do not materialize in constructions by 31^st December of the year preceding the year for which the construction tax is due.

• No construction tax is due for constructions that are exempt from the building tax/duty.

• Taxpayers who declare and pay the annual construction tax in advance by 25^th May inclusive of the year for which the tax is due benefit from a 10% bonus of the tax value.

• The ordinance includes provisions for taxpayers who apply a fiscal year different from the calendar year, for newly established taxpayers and those that are being dissolved.

• The provisions of this ordinance apply starting with the fiscal year 2025/the amended fiscal year starting in 2025.