LOCAL TAXES AND FEES

    By courtesy of the Ministry of Public Finance

The local taxes and fees are the following:

a. Tax on buildings;
b. Tax on land;
c. Fee on means of transport;
d. Fee for the issuance of certificates, permits and authorizations;
e. Fee for using means of advertising and publicity;
f. Tax on shows;
g. Hotel fee;
h. Special fees; and
i. Other local fees.

For the functioning of local public services created for the benefit of natural and legal persons, the local councils, county councils and the General Council of the Municipality of Bucharest, as the case may be, may adopt special fees.

The domains in which such special fees may be adopted, as well as their amounts are to be established in accordance with the provisions of Government Emergency Ordinance no. 45/2003 on local public finance with further modifications.

Exemptions and facilities for legal persons

• The buildings and land tax are to be reduced with 50% for the buildings and related land owned by legal persons which are used exclusively for the provision of tourist services, for a period of not more than 5 months during a calendar year;

• The buildings tax is to be reduced with 50% for the newly constructed buildings owned by consumption or handicraft cooperatives, but only for the first 5 years as of the acquisition date.

• There are exempted from taxation of the buildings tax and land tax, the buildings and the land which are placed in the industrial, scientific, technological parks, according to the law.

• In case of land tax:"The local council may grant the exemption from the land tax payment or the decrease of it for the land afferent to the carry on investments, according with the Law regarding the promotion of the direct investments with significant impact in economy, with subsequent modifications, on the entire period of execution of the investment, until the placing in function, but not longer then 3 years from the beginning date and not later then December 31, 2006".

NEW

Beginning with 1^st of January 2007 a New Fiscal Code will enter into force (for detailed information see Law 343/2006):

Regarding the local taxes includes the followings:

- in the context of denomination of the national currency and of the proposals formulated by the local authorities, the collection of local taxes will be done 2 times in equal rates, on March 31, and September 30 instead of 4 times as it is currently;

- at the proposal of the associate structures of the local authorities, the norms provide the areas where the local councils may decide special taxes and to increase the local taxes up to 20%, instead of unlimited increase, which lead to taxpayers’ unhappiness.

- adjust the taxes by the inflation rate every 3 years, when the inflation rate exceeds 10% cumulated, instead of annually as provided by the current legislation;

- in case of buildings used as housing with more than 150 square meters, the tax on buildings will increase by 10% for each 100 sm or fraction of this area;

- the tax on transportation means will increase based on the power of the vehicle by multiplying the each group of 200 cmc with a value between 7 - 120 RON; 

- increase the tax owed for sport ships and entertainment ships at 5000 RON/year against 1800 RON/year as currently;

- there has been introduced the obligation of companies in the public food sector to pay annually a tax of up to 3000 RON, the amount of this tax being established by the local council;

- introduce the competence for local councils to issue tax exemptions for buildings related to investments of more than 1 million euros, created by investors for 5 years.  

For more information:http://www.mfinante.ro