New tax for the transfer of property

Starting with February 1st the method of determining the tax due for the income coming from transfer of property rights changes, as follows:

  • for income resulting from the transfer of property rights for the construction of any kind and associated land, as well as the land of any kind without construction, amounting to 450,000 lei (aprox. 100,000 €), the Romanian state will not apply any tax;
  • for the incomes resulting from transfers amounting to more than 450,000 lei (aprox. 100,000 €), the tax represents 3% of the difference between the value declared by the parties and the allowance of 450,000 lei.

The Romanian Government says that this decision intends to encourage the sales of real estate, which leads to a growing construction industry, oriented to construction of living houses.

 

2017 special tax for accommodations and food industry companies

The new year came with a very important amendment to the tax regime in Romania.

The Law. no. 170/2016 stipulates that the companies that have in their articles of incorporation activities regarding accommodation of the tourists, restaurants, catering, or the selling of any kind of drinks, must pay a different tax than they paid before.

This means that they will not pay anymore a tax related to the revenue or profit, but it will be calculated using a formula with more variables, such as the value of the standard tax, the ranking of the town where the activity is driven, the area where the activity is developed, seasonality, adjustment for technical space of the business.

This kind of amendment eliminates the problem that the fiscal authorities encountered so far in collecting the taxes, related to the non-issuing the fiscal documents that stated the commercial activity these companies developed. Therefore, the firms will pay taxes no matter their declared revenue was that year.