Fiscal and Accounting treatment of Landowner–developer relations

In light of recent developments in the construction and fiscal fields, the relationships between landowners and developers have become a key focal point in the analysis and regulation of fiscal and accounting policies. This sector has a direct impact on urban development and the growth of economic activity, creating new opportunities for employment and sustainable development.

Following the approval of legal and sub-legal changes, and in the implementation of new guidelines, including Joint Instruction No. 34, dated 29.12.2023, there has been an improvement and clarification in the fiscal and accounting treatment of construction agreements and the exchange of immovable properties. This publication aims to provide a detailed analysis of VAT aspects, corporate income tax, and applicable accounting standards in this sector, including VAT exemptions for the sale of buildings and the relations related to the transfer of immovable property.

One of the key laws defining the fiscal treatment of construction activities is Law No. 29/2023 on Corporate Income Tax, which introduces an updated system for calculating income and expenses from construction activities. Likewise, Law No. 92/2014 on VAT provides clear rules for VAT exemptions on the sale of constructed immovable property, encouraging sectoral development.

This publication is important for helping landowners and developers understand the legal and fiscal requirements, and to ensure that both parties comply with the obligations set forth by current legislation. The accurate definition of fiscal and accounting treatment is essential for ensuring transparency and the fair regulation of this critical economic sector.

For more information and details on the treatment of these relationships, we invite you to consult the full publication.