Amendments To The Special Construction Tax

On 1 January 2014, the Romanian Government introduced a new property tax, namely a tax on constructions. This tax has proven to be controversial, with many deeming it to constitute a severe tax burden for any capital intensive businesses such as energy, telecom, or even retail.

The purpose of the construction tax is to capture under its scope and tax all types of constructions and assimilated assets other than buildings, which are subject to another property tax, the so-called building tax.

The construction tax, which is due yearly, was initially set at 1.5% of the gross book value of qualifying assets at the end of the previous year.

Following the negative reaction of the business community and the widespread debate the construction tax has caused, the Romanian Parliament adopted Law 11/2015 at the beginning of 2015, bringing about significant amendments to the relevant legal provisions for the construction tax.