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The GDT begins with the verification of taxpayers, subject to Tax on Rent

The General Directorate of Taxes has completed the analysis of the payment of tax liabilities on the Tax on Rent by the registered taxpayers.

The aim of this analysis is to verify those taxpayers that are active, but that are not registered under the tax liability of Income Tax; taxpayers that are registered, but that do not pay the Tax on Rent, as well as taxpayers that pay this tax, but their value should match with the DCM No. 469, dated 03/06/2015 “On defining the minimum value of the reference prices of rents for tax purposes”.

For the category of taxpayers that do not have the tax liability of Income Tax, the Tax Administration will verify whether:

  • The premises in the addresses declared where the activity is conducted are owned by the company (certified by the title of property);
  • The premises where the activity is conducted have been rented with a contract and whether the rent value pursuant to the contracts endorsed is paid with a tax invoice (certified by the tax invoice for rent, whether with VAT or VAT excluded).
  • The premises where the activity is conducted have been rented with a contract and have not been registered to declare or pay the Tax on Rent. In such cases, the taxpayers shall be registered under the tax liability of Income Tax to declare and pay the Tax on Rent.

The same verification will be conducted even for those taxpayers that have tax liabilities and declare, but that do not pay the Tax on Rent. In all those cases where the taxpayers result in non-registered rental contracts, legal actions shall be taken to include them in the tax liability of Income Tax and shall be obliged to pay it.

Moreover, for those taxpayers that already have the tax liability of the Income Tax and pay the Tax on Rent, verifications will be conducted to see if the values of the rental contract are in compliance with the prices of reference. Respective re-evaluations will be performed for the differences between the declared value and contract value.

The Tax Administration would like to make an appeal to all taxpayers, that still are not subject to the payment of the Tax on Rent, to be registered and pay the liability as per the effective legislation.