Taxation of commercial real estate in Poland
The Ministry of Finance has informed about planned changes in commercial property tax regulations, which are set to improve the system and successfully eliminate the tax optimization.
“The Ministry of Finance is planning to make changes in regulations of corporate tax act and personal income tax act in the field of minimum commercial property income tax regulations.
These changes were based on consult with European Comission” – it was stated. “Solutions proposed are supposed to improve the regulations, which will let eliminate aggressive tax optimization, with following the rules of fair competition at the same time and according to the public help rules" - it was explained. According to the information given by the Ministry, the minimum commercial property income tax will apply to the buildings or their parts that are being lend base on leasing agreement. It won't apply to the buildings that are not being lend.
"This solution would be applied to minimum tax payed in 2018 as well" - says Ministry of Finances. According to the Ministry’s plans, the taxpayer should have a possibility to be tax free depending on all his properties that together are worth less than PLN 10 million, instead of taking every building into consideration separately as it is today.
The residential buildings, handed over within the government and local self-governments help programmes, would not be included in the new regulations. Another regulation change lets the taxpayer get a return if they overpaid (paid above the amount of corporate tax (CIT) or personal tax (PIT)). The minimum tax will be returned after the tax office confirms, that the requirements of transactions with other subjects correspond with market requirements and the tax settlement was done correctly.
“This change will apply to the minimum commercial property income tax paid in 2018” – we can read in the statement. Moreover, the Ministry of Finances plans to introduce a clause that will prevent taxpayers from avoiding the obligation of paying the minimum commercial property income tax. “It would have use with the transfers made only for the purpose of avoiding to pay the minimum property income tax” – it was explained.