Poland: Real estate tax amendments

The Polish Ministry of Finance intends to modify the Polish Act on local taxes and charges with regard to definitions of a building and a construction. The planned amendments may significantly change real estate taxation principles in Poland, however the legislative process is currently on the initial stage and the final wording of the amendments cannot be determined.

Definition of a construction.

So far, the definition of a construction included in the Polish Act on local taxes and charges was directly linked to the Polish Construction Code. According to one of the possible projects of modifications this link may be eliminated and replaced by an alternative definition which in general broadens the concept of a construction. As a logical result, real estate tax charges in Poland may increase considerably.

Definition of a building.

The Polish Ministry of Finance is also considering adapting the definition of a building. As opposed to the proposed developments above, the modified Act on local taxes and charges may include a direct link to the definition of a building as specified in the Polish Construction Code. In fact, this amendment will however have no impact on the already existing tax practices.

Economic effects.

As already mentioned, the new definition of a construction may result in a significant increase of real estate tax charges in Poland. On that basis, the taxpayers should follow the works of the Ministry of Finance, although at this point in time it is still unclear when the final version of the proposed regulation will pass the Polish Parliament. However, the most probable date of effect is 2017.

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Anna Regenfelder

Anna Regenfelder

Senior Assistant | SteuerberatungDeloitte Tax | Telefon:+43 1 537 00 5737 | E-Mail senden

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