Emergency Ordinance for the amendment and completion of Title X of Law no. 227/2015 regarding the Fiscal Code, as well as for the amendment and completion of certain normative acts

On April 4, 2025, the Emergency Ordinance no.  21 was published in the Official Gazette no. 300, which brings changes to the newly introduced construction tax. Additionally, clarifications are provided for the constructions that are subject to this tax.

In relation to the modification of tax rates and the calculation base related to the construction tax:

• Starting with the fiscal year 2025, the following rates will apply for the annual tax on constructions owned by the taxpayer as of December 31 of the previous year, respectively the last day of the fiscal year modified prior to the one for which the tax is due:
  • 0.5% applied to the net value of the constructions;
  • 0.25% on the value of constructions from contracts or other legal acts that establish rights of administration, concession, free use, or rental, in the case of constructions that belong to the public or private domain of the state or local administrative units. In this case, the tax must be paid by the taxpayers who have these constructions under administration, concession, free use, or rental.
• According to the Emergency Ordinance, the net value of the constructions represents the value recorded in the debit ending balance of the accounts corresponding to the constructions, from which the cumulated accounting depreciation is deducted.

Regarding the constructions that are not subject to taxation:

• No construction tax is owed for constructions that are exempt from the building tax, respectively the building duty.
• As regards investments made to constructions used on the basis of management, concessions, use or rental agreements, they should not be considered constructions for the purpose of this tax, those investments which, as of December 31 of the previous year, respectively the last day of the modified fiscal year, are not included in Group 1 ("Constructions") from the Fixed Assets Catalogue.

With regards to the deadlines for declaring and paying the construction tax:

• Taxpayers who choose to apply the modified fiscal year are required to calculate and declare the construction tax by the 25^th inclusive of the fifth month of the modified fiscal year for which the construction tax is due.
• The payment of the construction tax is made in two equal installments, by the last day of the sixth month of the modified fiscal year, respectively by the last day of the tenth month of the modified fiscal year.
• Additionally, the Emergency Ordinance introduces clarifications regarding the declaration and payment of the construction tax for the newly established taxpayers and for those who cease their activity, such that the construction tax is proportionally applied for the period of their existence.

Regarding the value of constructions in contracts/ agreements that regulate the rights of management/ concession/ free use/ rental in the case of constructions that belong to the public or private domain of the state or other local administrative units:

• Contracts or agreements that regulate rights of management/ concession/ free use/ rental concluded after the entry into force of the Emergency Ordinance must mandatorily include the value of the constructions.
• If these legal acts do not specify the value of the constructions, the owners are responsible for determining this value and communicating it to the taxpayers who have the respective constructions under administration, concession, free use, or rental. This communication must be made by May 15, 2025, respectively by the 15^th inclusive of the fifth month of the modified fiscal year that begins in 2025.

Regarding the incentive granted to taxpayers who pay the annual construction tax in advance:

• Taxpayers who declare and pay the construction tax in advance, by the 25^th of May inclusive of the year for which the tax is due, respectively by the 25^th inclusive of the fifth month of the modified fiscal year, will benefit from a 10% discount on the amount of tax due.

The EY team is available for additional details regarding the aforementioned points.