Announcement on amendments to the Law “On local tax system”

In the framework of the new fiscal package, by means of the Law No. 106/2017 “On some amendments and addenda to the Law No. 9632, dated 30/10/2006 “On local tax system”, as amended, the meaning of the terms “Immovable property” and “Fiscal cadastre” has been defined (Article 3 of the law), related to which the establishment of a new budget institution has been foreseen, i.e. the General Directorate of Property Tax under the minister in charge of finances.

This law defines that the taxpayers at local level, can appeal against the decision or action of the tax office in the local structure of tax appeal and against the decision of this structure in the court.

Moreover, the categories, tax rate, manner of calculation and liability to pay the tax on buildings and the categories exempted from the tax on buildings are provided there.  

Given that a new budget institution will be established, the “General Directorate of Property Tax”, the responsibilities of the General Director of Property Tax and the responsibilities of the local self-government unit are provided there.

Likewise, in order to stimulate the sector of tourism, the amendments of this law provide for reliefs in the tax of investing for the construction of accommodation structures like “Hotels/resorts with 5 stars, special status”, as per the definition in the law.

This law has been published in the Official Journal No. 222, dated 19/12/2017, and shall enter into force on 01/04/2018, apart from the legal provision on the reliefs in the area of tourism (Article 7), which enters into force on 01/01/2018.

You can find the full law in the link: Local taxes