Last updated: 17 March 2016
After having treated, last week, the tax on residential buildings, this week we present to you the provisions applicable to the tax on mixed use buildings, a popular issue following the changes brought to the Tax Code implementing regulations.
In fact, the Tax Code implementing regulations were changed again by the Government last Friday. One of the most important changes is the taxation of mixed use buildings, namely those used both for housing purposes and for professional purposes. The main changes are presented to you hereinafter.
HOW THE TAX IS CALCULATED
For mixed use buildings owned by natural persons where an economic activity is carried out or where a registered office is located, if the surfaces used for housing purposes and for professional purposes result from the cadastral documentation, the tax on the mixed use building will be calculated as the sum between the tax on residential buildings and the tax on non-residential buildings, in accordance with the surfaces used for such purposes.
If the building’s address is also used as the registered office of a company that does not carry out an actual activity, the tax is calculated as the tax on residential buildings.
However, if the building’s address is also used as a tax residence for an economic activity (e.g. the registered office of a self employed person) and if utility expenses are not recorded in the accounting registries by the entity that carries out the said activity, the tax to be paid will be calculated as the tax on residential buildings.
Consequently, residential buildings used both for housing purposes and for professional purposes will not be subject to the special taxation of mixed use buildings, provided that utility expenses (gas, water, electricity) are not deducted by the entity using the space for professional purposes.
SUBMISSION OF THE TAX STATEMENT
The owner of the mixed use building must submit a tax statement until March 31st 2016. This statement must be accompanies by an affidavit attesting that no utility expense is registered / deducted by the person who carries out the economic activity.