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Construction tax – amendments and clarifications adopted by GEO 21/2025

08/04/2025
exe

The Emergency Ordinance no. 21/2025 for amending and supplementing Title X of Law no. 227/2015 on the Fiscal Code, as well as for amending and supplementing certain normative acts, was published in the Official Gazette no. 300 of April 4, 2025.

The provisions of the GEO apply starting with the fiscal year 2025 / with the modified fiscal year starting in 2025. 

A.    Tax rate and taxable base

The unique rate of 1% has been eliminated. According to the new legislative provisions, the annual construction tax is calculated by applying the following two tax rates:

  • The rate of 0.5% applicable on the net value of the constructions existing in the taxpayers' patrimony on December 31 of the previous year, except for the constructions provided for in the following point and those for which local tax on buildings is already due according to Title IX of the Fiscal Code.

Among the most important clarifications brought by this Ordinance is that, in order to determine the taxable base, the netbook value of the constructions is considered, respectively the value recorded in the debit balance of the accounts corresponding to the constructions from which the accumulated book value of their depreciation is subtracted.

  • The rate of 0.25% applicable on the value of the constructions from contracts/agreements or other legal acts by which administration/concession/free of charge use/rental rights are constituted, in the case of those belonging to the public/private domain of the state or of the administrative-territorial units, existing on December 31 of the previous year, except for those for which local tax on buildings is already due according to Title IX of the Fiscal Code.

The provision according to which the tax is due by taxpayers who have the constructions under administration/concession/free of charge use/rental remains unchanged. Thus, it is provided that the value of the constructions must also be included in the contracts, for the ones concluded after April 4, 2025. In case of older contracts that do not include this element, the owners of the constructions must set and communicate the constructions value to taxpayers by May 15, 2025.

B.    Clarification of applicability and territoriality

This Ordinance provides the following clarifications regarding the applicability of the tax:

  • The construction tax applies exclusively to constructions located on the territory of Romania.
  • No construction tax is due to constructions that are exempt from local building tax according to the provisions of Title IX of the Fiscal Code.
  • Investments made by taxpayers in constructions used based on lease/management lease/joint venture agreements and the like are not subject to construction tax if, by December 31 of the previous year, these investments do not materialize in constructions provided in group 1 of the Catalogue on the classification and normal operating times of fixed assets.

The provision applies similarly in the case of investments made by taxpayers in constructions used based on contracts/agreements or other legal acts by which administration/concession/free of charge use/rental rights are constituted.

C.    10% tax reduction for advance payment

We remind you that the construction tax should be declared through Form 100 until May 25 inclusive and shall be paid in two equal installments until June 30 and October 31 inclusive.

However, according to the new legislative provisions, taxpayers who declare and pay in advance the annual tax on constructions, until May 25 inclusive, benefit from a 10% tax reduction.

D.    Provisions applicable to certain categories of taxpayers

1. Taxpayers who have opted for a financial year, and implicitly a fiscal year, different from the calendar year:

  • The taxable base should be set considering the netbook value of the constructions that existed in their patrimony on the last day of the amended fiscal year prior to the one for which the construction tax is due.
  • The calculation and declaration of the tax shall be carried out by the 25th of the fifth month of the amended fiscal year for which the tax is due.
  • The payment of the tax shall be made in two equal installments until the last day of the sixth month of the amended fiscal year, respectively until the last day inclusive of the tenth month of the amended fiscal year, for which the tax is due.
  • In order to benefit from the 10% tax reduction, these taxpayers must declare and pay the tax by the 25th of the fifth month of the amended fiscal year for which the tax is due.

2. Newly established taxpayers owe construction tax starting with the year of establishment, considering the patrimony held 30 days after registration. The tax is determined proportionally to the number of days related to the registration period and is declared and paid until January 25 inclusive of the year following the year in which they were established / 25th of the first month of the amended fiscal year following the one in which they were established.

3. Taxpayers who cease to exist during the year recalculate the tax proportionally to the period of existence and have the obligation to declare and pay the tax by the end date of the period of the year in which the taxpayers existed. If the taxpayers cease to exist after the declaration deadline, a rectifying declaration shall be submitted. They can also benefit from the 10% tax reduction if they pay in advance.

 

Disclaimer

The information contained in this newsletter is intended to give you an overview of new legislation; the newsletter does not contain a comprehensive analysis of each topic. For further information on the topics covered please contact us. No responsibility is accepted for decisions or omissions following the use of the content of this newsletter. 

Crowe România