Property tax Poland: New version of amendment published

The Polish government has published a new version of the amendment to the property tax law. Among other things, it aims to remove doubts about the interpretation of the current provisions and to clarify them so that they can be applied correctly. The law is set to come into force on 1 January 2025.

The Ecovis experts already reported on the new law in Poland when the Ministry of Finance published draft amendments to the laws on farming tax, local taxes and fees, forestry tax and stamp duty, as well as amending regulations on property tax.

Scope of changes

Because the changes proposed by the Ministry of Finance were much more extensive than those previously announced, the draft regulations were met with much criticism from other ministries, industry and business organisations, and other entities that had taken part in consultations on the project.

As a result, the Ministry of Finance changed the draft amendment to the regulations and largely took into account the postulates submitted during the consultations.

We will keep you informed of possible further changes and support you in implementing changes to the regulations.

Hubert Kaczyński, Tax Advisor, ECOVIS Poland, Warsaw, Poland

Practical issues

The proposed changes, including among others the definitions of a “building” and a “non-building structure”, will not cause an increase in tax burden, will eliminate interpretational doubts in the current provisions, and clarify the applicable regulations.

The draft amendments include, among others, the following provisions:

• In the case of photovoltaic power plants, energy storage facilities, industrial furnaces, cable cars or ski lifts, only the construction part of these devices (e.g. foundations) will be subject to taxation.
• Removal of the requirement to recognise the facility and installation as a “technical and utility whole” – the decisive criterion for taxation will now be whether the installations ensure the possibility of using the building or non-building structure in accordance with its intended purpose.
• Clarification that buildings and non-building structures refers only to objects erected as a result of construction works (and not, for example, by means of assembly).

These changes will significantly affect the amount of taxation of non-building structures. It is important to remember that the tax rate applicable to non-building structures or their parts related to conducting business activity is 2%, and that the tax base is that used as the basis for calculating depreciation, not reduced by any depreciation.

The amendment also provides for a longer deadline for submitting property tax returns for 2025. Taxpayers meeting the conditions specified in the regulations will be able to submit property tax returns for 2025 by 31 March 2025 (instead of the usual deadline of 31 January of a given year).

The draft of the law will now be subject matter of Parliament’s work.

According to previous announcements, the law is expected to come into effect on 1 January 2025.

For further information please contact:

Hubert Kaczyński, Tax Advisor, ECOVIS Poland, Warsaw, Poland
Email: hubert.kaczynski@ecovis.pl