Improved surface land tracts19/12/11 / cata_tax-news

The General Tax Directorate has issued detailed instructions regarding the amendment to the Real Estate Tax Act, which we informed our readers about in Tax News No. 7/2011.

As of 1 January 2012, improved areas on tracts of land used for, or in connection with, business operations shall be subject to land tax at a special tax rate.

As a result of the definition of the improved areas of land tracts as a subject of tax, taxpayers are required to file a real estate tax return (or a sectional real estate tax return) in which they shall include the improved land and the tax applicable thereto.