The Construction Tax - An Obstacle to Romania’s Development | Tax Expert Insight

 

This article is part of the series Important tax changes commented in detail by our experts
 

As of January 1, 2025, through GEO 156/2024, the construction tax has been reintroduced, a tax measure that raises many questions for companies and investors. This is a modified version of the "pillar tax" applied between 2014 and 2016, abolished at that time precisely to encourage investment and economic development.

But the new form of the tax broadens the scope of taxpayers affected, including not just traditional buildings, but also agricultural infrastructure, premises leased from public authorities, as well as certain improvements and redevelopment works. However, in the absence of clear methodological rules, companies face major difficulties in estimating tax liabilities and the impact on their budgets.

In this detailed article, we analyze how this tax will be calculated, what aspects remain unclear and how it will affect various industries, with a special focus on the energy sector. We also highlight the main practical problems with the measure and try to give an insight into possible solutions. The issues addressed by this material are the following:

• How will construction tax be calculated in 2025? (what we know so far);
• What is missing to make this tax operational?
• Practical issues common to all taxpayers (basis of calculation, payment deadline, development of owned or rented space, land development);
• Analysis of some issues specific to the energy sector (investments in wind farms, photovoltaic, public lighting infrastructure)

 

Read the full article for full details!