Farmers and Processors

Since January 1, 2013, local taxes and fees, including the building tax, have been increased by 16% by some of the local councils by indexing with the inflation rate based on Government Decision no. 1309 of December 28, 2012. The government left to the local councils the increase of local taxes and fees for this year.

Given the difficulties faced by farmers and milk processors, individuals and legal entities, amid the economic crisis, some local authorities have decided not to increase donations this year (such as the counties of Bucharest and Targu Mures), but there are also authorities that support the increase of donations such as Ploieşti and Suceava counties.

In view of these increases in local taxes and fees, it is absolutely necessary for farmers and processors to know the tax base (for what the building tax is due) and to what extent so that the payment of this tax does not significantly affect farmers ‘and processors’ finances and capacity. to continue their activity and thus threatened by the current economic conditions and the pressure on prices exerted by the traders and distributors with whom they interact.

The tax on buildings is due by their owner to the local budget of the commune, city or municipality in which the buildings are located.

It is considered a building, and is due the building tax, any construction located above the ground and / or below its level, regardless of its name or use, and which has one or more rooms that can be used to house people , animals , objects, products, materials , installations, equipment and the like. Its components are the walls and the roof, regardless of the materials from which they are built.

The tax on buildings is also due for the buildings where the animals and the equipment / products used in the production of milk and milk products are housed!

FDL 9 MANAGEMENT 1In establishing the buildings for which the tax is due, the exemptions mentioned by the Romanian tax legislation must also be taken into account. Thus, the following are exempt from paying the building tax: buildings that are used as greenhouses, solar, nurseries, mushrooms, feed silos, silos and / or beds for storing and preserving cereals , except for rooms that are used for other economic activities.

In the case of feed silos and silos and / or grain beds, no building tax is due! Thus, farmers and milk processors must be very careful that the representatives of the local authorities do not request the payment of the building tax for these spaces as well.

In the case of legal entities, the building tax is calculated by applying a tax rate on the inventory value (from accounting) or the revalued value of the building. The tax rate is established by decision of the local council and can be between 0.25% and 1.50% inclusive.

A 15% discount is applied in the case of a building whose value has been fully recovered through depreciation.

Careful! Increases in the case of buildings that have not been revalued!

In the case of buildings older than 3 years, their revaluation must be considered in order to avoid the increase of the building tax rate as follows:

a) between 10% and 20% for buildings that have not been revalued in the last 3 years prior to the reference fiscal year, in our case 2013;

b) between 30% and 40% for buildings that have not been revalued in the last 5 years prior to 2013.

These quotas are applied to the inventory value of the building registered in the accounting of legal entities, according to the accounting regulations. Exceptions to this increase are buildings that have been fully depreciated.

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