Judgment No. 8985 of 2024: Clarifications on Cadastral Income for Power Plants

The recent judgment No. 8985 of April 4, 2024, issued by the Court of Cassation, has provided important clarifications regarding the determination of cadastral income for power plants, particularly in relation to plant components. This ruling falls within the regulatory framework provided by Law No. 208 of 2015, which introduced significant changes in cadastral assessment for special-purpose properties.

Regulatory Context and the Court's Ruling

According to Article 1, paragraph 21 of Law No. 208 of 2015, the inclined planes of power plants, being an integral part of the production process, must not be considered for the determination of cadastral income. This principle is based on the fact that such components are inseparable from the production cycle and, therefore, their value should not be subject to taxation.

• Law No. 208 of 2015 excluded plant components from the calculation of cadastral income.
• The judgment rejected the appeal of the Revenue Agency, which intended to include inclined planes in the valuation.
• The distinguishing criterion applies regardless of the structural nature of the property.

Implications of the Judgment for Energy Sector Companies

This ruling has a significant impact on companies operating in the energy sector, as it allows for a reduction in the tax burden related to cadastral income. The Court's decision not to consider plant components enables companies to optimize their costs, facilitating investments and innovations in the field of energy production. Power plants can therefore benefit from a more favorable tax regime, stimulating the sector's competitiveness.

(CADASTRAL OFFICE) - IN GENERAL Special-purpose properties - Power plants - Determination of cadastral income - Art. 1, paragraph 21, of Law No. 208 of 2015 - Plant component - Computability - Exclusion - Basis - Case law.

Conclusions

Judgment No. 8985 of 2024 represents a step forward in defining the tax rules for power plants and, more generally, for special-purpose properties. The Court has clarified that plant components, such as inclined planes, must not be included in the cadastral income, thus placing a strong emphasis on the importance of the productive functionality of properties. Energy sector companies can now plan their tax strategies with greater certainty, contributing to a more favorable economic environment for investment and development.