Which are the most important fiscal updates that property investors in Romania need to be aware of in 2021?
Published in Real Estate Guide 2021 by Business Review
Lucian Barbu, Tax Partner, contributed to the latest edition of the Real Estate Guide published by Business Review, paper that tackles the major insights into Romania’s Property Market in 2021.
“From a fiscal point of view, it is worth mentioning that in June 2021 the Senate approved a legislative amendment to repeal the 80% tax on agricultural land. While the amendment still requires the approval of the Chamber of Deputies, the removal of this tax will be welcomed by investors in agricultural businesses.
Also, the Government has undertaken through the National Plan for Recovery and Resilience to perform a revision of the property tax system. While not much detail is available yet, the tax quota interval might be extended and also an adjustment mechanism might be enforced to take account of the energy efficiency of buildings for building tax calculation purposes.
Investors may also be interested in the new corporate tax consolidation mechanism, available starting 2022, through which the losses and profits between various group companies in Romania could be offset for corporate tax calculation purposes.
And last, but not least, it is worth mentioning that in the second half of 2021 the Standard Audit File for Tax (SAFT) reporting mechanism will probably be enacted, and taxpayers will need to adapt their systems to accommodate this new reporting requirement before 1 January 2022.”
The full report prepared by Business Review’s editorial team is available here.