Reduced tax on special construction comes into force officially

The law no. 11/2015 enforcing the emergency ordinance that provides the reduction of the tax on special construction by 33 percent will come into effect as from January 16, 2015 after being published in Romania’s Official Gazette three days earlier.

Thus, the tax will be reduced from 1.5 percent to 1 percent of the estimated value of constructions held by taxpayers which were in their possession on December 31 of the previous year.

Payment of this tax will be made on a biennial basis based on Statement 100 which must be submitted by May 25, the deadline for the first installment. The remaining amount due must be paid by September 25.

The bill amending the initial provisions with respect to taxing special constructions was passed by the Senate at the beginning of the past year, while the Chamber of Deputies, the decision maker as regards this draft law which revises the Fiscal Code, voted it on December 19, 2014.

In 2014, the first year the tax was introduced, returns to state budget were estimated to about 1.5 billion lei, although at first, estimations indicated only 500 million lei.