The reintroduction of the pole tax in 2025

The government recently adopted Emergency Government Ordinance No. 156/2024 regarding some fiscal-budgetary measures, which amend the Fiscal Code. Among the main changes is the reintroduction pylon tax, a tax applicable to special constructions, previously eliminated in 2017.

This fiscal measure has significant implications for taxpayers, as it directly affects owners of special buildings and certain economic sectors.

What does GEO 156/2024 stipulate regarding the pole tax?

The updated text of Article 498 of the Fiscal Code establishes the following essential rules regarding pillar tax:

• The tax is calculated by applying a rate of 1% on the value of existing buildings in taxpayers’ assets as at 31 December of the previous year.
• Buildings for which building tax is paid in accordance with Title IX of the Fiscal Code are exempt.
• The tax also applies to buildings in industrial, scientific and technological parks that do not qualify for exemption.
• In the case of buildings owned by the state or administrative-territorial units, the tax is owed by those who administer or use them.
• The expense relating to this fee is deductible in determining the tax result.

The impact of the new pole tax on taxpayers

According Article LXIV, point 16 Under Emergency Ordinance No. 156/2024, from 2025 onwards, taxpayers will be required to pay pillar tax for the special constructions in their asset base. This measure will generate additional costs for companies operating in infrastructure, telecommunications and energy.

The revenue collected from this tax will be channelled towards the national budget, unlike property tax, which is administered at local level.

How is the pole charge calculated in 2025?

To avoid any misunderstanding, taxpayers should bear the following points in mind:

• The value of buildings is determined in accordance with the accounting records from 31st December of the previous year.
• No tax reassessments are carried out during the current year, even if there are changes in the value of the buildings.
• The tax is payable even for buildings under management or free use.

At present, there are no clear methodological guidelines for the application of pylon tax, with the Government set to adopt them in the near future.

Legal issues and their impact on the business environment

The reintroduction of this tax raises certain issues regarding the predictability of tax legislation. According to Article 4 paragraph (1) of the Fiscal Code, any tax changes should come into force after at least 6 months from the date of publication. However, Emergency Ordinance No. 156/2024 was adopted and brought into force within an extremely short timeframe, which may cause difficulties for taxpayers in complying with it.

Furthermore, the charge was introduced without adequate public debate, which undermines the principle of legal certainty.

Conclusion – What can affected taxpayers do?

In the context of the new tax changes, it is essential for the affected companies to assess the impact pylon tax on operational costs and adjust their financial strategies accordingly.

👉 For further information regarding the application of the pole tax, please contact the team at Adesman & Associates.