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The tax for special constructions will be reduced

Written by: Bridgewest

A_reduced_tax_for_special_constructions.jpgThe tax for special constructions in Romania will be reduced from 1,5% to 1% of the entire value of the construction. The collected amounts will be used by the local authorities and will not be included in the state budget.
 
The Romanian Prime Minister, Victor Ponta, recently declared that the Government wishes to reduce the tax for special constructions from 1,5 % to 1%. Also, the tax will be collected by the local authorities and it will no longer be included in the state budget. By doing this, the Romanian Government hopes to encourage development and investments and give the local authorities a chance to use the money for constructing new roads, investing in schools, waterworks and other facilities.
 
The modification will be implemented following a suggestion made by the Romanian Parliament and this solution will be implemented soon.
 
The tax for special constructions
 
The tax for special constructions was introduced earlier this year and it applies for constructions which were not previously taxed, such as piers, ramps, concrete platforms, any other items except office buildings and manufacturing immovable which were already taxed.
 
The tax must be paid in two annual rates. This tax will apply on company assets and includes fixed assets, such as: buildings with light steel structures, platforms and tracks, drilling equipment (probes and other items), mining towers, ramps, chimneys, cooling towers, dust extraction chambers, drying chambers, silos used in agriculture, greenhouses, barns, different constructions for livestock, infrastructure rails, ship docks, bridges, viaducts, lightweight constructions for telecommunications, telephone booths, old machinery used for transport, post and telecommunications etc. 
 
The introduction of the new tax raised many arguments among Romanian officials. Some specialists warned that these new taxes will have a negative impact on the overall investments in the country. However, other analysts said that this is not necessarily a real reason for concern, because the expenses for the companies will only increase by 1,5% or 2%.
 
Our accountants in Bucharest can help you with tax compliance if you have a business in Romania that will be taxed according to the new provisions. Please contact our Romanian accountants for more details.