Tax on buildings (“pole tax”) went down to 1%

Starting with 2015, a series of amendments will be brought in relation to the tax on buildings, envisaging both the tax rate, but also the taxable base. In brief, the tax on buildings went down to 1%. In respect of the taxable base, a series of amendments were made as regards the deduction, from the said base, of specific items (i.e. fittings performed on buildings leased, taken over for administration or use do not fall under the scope of the tax on buildings).

The new legislative enactment was published in Official Gazette of Romania nr. 24 of 13 January 2015. For more details, please see Law no. 11/2015, for the approval of Government Emergency Ordinance no. 102/2013 amending and supplementing Law no. 571/2003 on the Fiscal Code, which became effective on 16 January 2015.

Amendments made to the tax on gambling proceeds

A series of amendments and updates in relation to taxes were brought in the gambling sector. In effect, gambling proceeds shall be subject to withholding tax at a rate of 1% applied to all amounts collected by a participant from a gambling organization. Gambling proceeds exceeding the equivalent of EUR 15,000 shall be subject to a 16% tax, while for proceeds exceeding the equivalent of EUR 100,000 shall a 25% tax shall be paid.

Furthermore, the non-taxable limit of RON 600 per day gained by a gambling organization was removed. On the other hand, in the case of proceeds resulting from prizes, the non-taxable value of RON 600 per each prize shall be maintained.

The new legislative enactment was published in Official Gazette of Romania no. 957 of 30 December 2014. For further details, please see Government Emergency Ordinance no. 92/2014 regulating certain fiscal and budget measures and amending certain legislative enactments amending and supplementing Government Emergency Ordinance no. 77/2009 on the organization and operation of gambling. The provisions of the Government Emergency Ordinance shall come into effect starting 13 February 2015.

VAT of 9% for accommodation

Pursuant to the new Guidelines for the enforcement of the Fiscal Code, the reduced VAT rate of 9% shall apply to all types of accommodation in tourist hospitality facilities acting as accommodation (i.e. accommodation without breakfast, bed and breakfast, half-board accommodation, full-board accommodation, “all inclusive” accommodation).

The 9% rate shall also apply where the precise costs of such operations is reinvoiced, save where the special conditions apply for travel agencies.

The new legislative enactment was published in Official Gazette of Romania no. 46 of 20 January 2015. For additional details, please see Decision no. 20/2015 amending paragraph (6) of item 23 in Title VI “Value Added Tax” in the Guidelines for the enforcement of Law no. 571/2003 on the Fiscal Code, as approved by Government Decision no. 44/2004.