New amendments regarding the Pole Tax

Government Emergency Ordinance no. 21/2025 (“GEO 21/2025”) has officially entered into force, introducing significant amendments to the Fiscal Code concerning the taxation of constructions not subject to local taxes (the “Pole Tax”). GEO 21/2025 builds upon the December 2024 regulation, which marked the reintroduction of the Pole Tax by bringing a new round of adjustments and clarifications meant to improve the tax’s implementation framework. However, despite the legislative update, the implementing rules are still missing. Although a 90-day deadline for these rules was set under the December 2024 regulation, the draft implementing act has yet to be published or submitted for public consultation.

Key Highlights:

► Reduced tax rate The Pole Tax rate has been reduced from 1% to 0.5%, now applicable to the net value of constructions (i.e., constructions other than those subject to local taxation), as recorded in the taxpayer’s assets on December 31 of the previous year or, where applicable, on the last day of the modified fiscal year preceding the one for which the tax is due. ► Definition of the net value of constructions The new regulation defines the net value of constructions as the value recorded in the debit balance of the accounts corresponding to constructions, from which the cumulative accounting value of depreciation is deducted. ► New exemptions The Pole Tax is no longer applicable to: a) constructions that are exempt from local taxation in accordance with the provisions of Title IX of the Romanian Tax Code; b) constructions located within the territorial sea of Romania, as such is defined by Law No. 17/1990; c) Investments in constructions if such have not resulted in constructions, as defined in Article 497 of the Romanian Tax Code, by December 31 of the previous year or, where applicable, on the last day of the modified fiscal year preceding the one for which the tax is due. To benefit from this exemption, taxpayers must have the right to use the constructions they are investing in (g. have rights of administration, concession, free use, lease, based on lease agreements/management lease agreements/joint venture agreements or similar arrangements). ► Declaration and payment deadlines For taxpayers using the regular fiscal period, the Pole Tax will be calculated and declared by May 25. Payment shall be made in two yearly instalments, the first due up to June 30 and the second due up to October 31. For taxpayers using a modified fiscal period, the Pole Tax shall be calculated and declared by the 25th of the fifth month of the modified fiscal year for which the tax is due. Payment shall be made in two equal instalments by the last day of the sixth month and the last day, inclusive, of the tenth month of the modified fiscal year for which the tax is due. ► Early payment discount A 10% discount is applicable if declaration and payment are made by May 25 or by the 25th of the fifth month of the modified fiscal year for which the tax is due, respectively. The discount also applies to taxpayers who cease to exist during the fiscal period for which the tax is due but decide to pay the tax in advance. ► Additional clarifications Provisions have been introduced regarding how the tax is calculated by taxpayers who cease to exist, as well as by taxpayers incorporated during the fiscal period for which the tax is due. We will provide further updates as soon as additional information becomes available.