The Ministry of Finance has issued clarifications regarding the construction tax, as per Title X of the Fiscal Code (Law No. 227/2015, as amended).
Who must pay the construction tax:
- Romanian legal entities, except for:
- public institutions,
- national research and development institutes,
- associations and foundations,
- other non-profit legal entities;
- Foreign legal entities operating through a permanent establishment in Romania;
- Legal entities established under EU legislation with headquarters in Romania.
What constructions are taxed
The tax applies to constructions listed under Group 1 in the “Classification and useful life catalog for fixed assets,” approved by Government Decision No. 2139/2004.
How the tax is calculated:
- a) A 0.5% rate is applied to:
- Constructions for which no building tax is due;
- The tax base is the net book value of such constructions owned as of December 31, 2024.
Net book value = accounting value – accumulated depreciation
Steps:
- Identify Group 1 constructions in the company’s assets;
- Exclude those subject to building tax or exempt;
- Apply 0.5% to the remaining net value.
- b) A 0.25% rate is applied to:
- Constructions belonging to the public/private domain of the state or local authorities, used under:
- administration,
- concession,
- free use,
- or lease agreements,
- Owned/used as of December 31, 2024.
In this case, the tax is paid by the user of the asset.
10% Early Payment Discount
If the annual construction tax is declared and paid early, by May 25, 2025, or by the fifth month of a modified fiscal year, a 10% discount applies.
The discount is calculated by the taxpayer and included in Form 100 (“Statement of tax obligations to the state budget”).