The draft version of tax changes presented by the Ministry of Finance under the so-called “Polish New Deal” act introduces a number of modifications important for real estate companies. Most of the planned regulations are expected to enter into force as of the tax year 2022. Below we present some of the major issues that […]
Real estate rich companies are eligible for a lower real estate tax rate
The mere ownership of real estate by an entrepreneur does not determine the real estate tax rate. This is the outcome of important judgments issued in 2021 – first, by the Constitutional Tribunal (TK) in February (ref. no SK 39/19) and then by the Supreme Administrative Court (NSA) in March (ref. no III FSK 895/21 […]
Real Estate Tax (RET) Review
Recently we noticed an increased activity of local tax authorities regarding the verification of correctness of calculating, declaring and paying the real estate tax. This tax constitutes a significant part of revenues of local governments which, like by entrepreneurs, in the era of COVID decreased. The verification very often ends up with the necessity to […]
Real estate business in Poland – how to prepare for 2021
Significant changes for real estate business investing in Poland will come into force as of 2021. For the first time, the definition of a real estate company is about to be introduced. A real company is: entity obliged under accounting regulations to prepare a balance sheet, in which (i) on the first day of a […]
Protocol amending the Polish-Dutch Double Tax Treaty – what has been agreed?
On 29 October a Protocol amending the Polish-Dutch Double Treaty was signed. The Protocol introduces real estate clause. This means that Poland will also have the right to tax income from sale by Dutch shareholders of shares in a Polish real estate entity. So far this right was attributed solely to the Netherlands. Taxation in […]
General Anti-Abusive Regulations (GAAR) in Poland
General Anti-Abusive Regulations (GAAR) were introduced in Poland as of 15 July 2016. However, for the first 3 years, they were scarcely used. This has however changed. In the press publications of 16 October 2020, the Ministry of Finance informs that he has just finished 20 tax proceedings which resulted in PLN 500M of additional taxable […]
Anti-crisis Shield 4.0 – bad debt relief and the so-called minimum income tax
On June 24, 2020, the so-called anti-crisis Shield 4.0 regulations entered into force introducing to the acts on income taxes i.a. an episodic exemption from the tax on revenues from buildings and shortening the period after which a taxpayer is entitled to take advantage of the so-called bad debt relief. Exemption from tax on revenues from buildings New […]
Real Estate Sector in CEE – Poland / Slovakia / Czech Republic / Hungary
In the recent 20 years, CEE countries have been increasingly attracting the attention of investors from the real estate sector worldwide. The answer to the question “why?” becomes quite obvious when you dig into details of the level of yield in particular countries of Europe. Investors prefer to locate their funds in our region since […]
Anti-Crisis Shield – Summary of Implemented Solutions
On 1 April 2020 a package of bills and decrees, so-called “Anti-Crisis Shield”, entered into force. Below we present the most important solutions: SUPPORT CONCERNING EMPLOYERS, EMPLOYEES AND SOCIAL SECURITY CONTRIBUTIONS (ZUS) 1.Exemption from social security contributions (upon request) Exemption for small companies (up to 9 people registered for social security) from social security contributions […]
“Anti-crisis shield” – Polish government finally published draft bills
Polish government published on 26 March the so-called “anti-crisis shield” – a package of draft bills. Today (27 March) the Parliament is to vote on the projects. The proposed changes are aimed at protecting the labor market and improving companies’ cash flow. The size of the company and the type of industry will decide on […]