The minimum tax in Poland on commercial real estate has been introduced in 2018.
It is income tax, which must be paid by owners of commercial properties worth more than PLN 10 million. Although these regulations are new, there are plans to amend them. This is the effect of consultation with the European Commission (EC).
The changes will be introduced in a few areas.
1.Liable to taxation will be only the buildings that are used under a rental, lease etc. agreement. Buildings not meeting the criteria will not be taxable. This beneficial solution would also apply to the minimum tax already paid in 2018.
- 2.The method of applying the threshold of PLN 10 million to which the minimum tax does not apply, will be different. After the changes, there will be one free amount for a taxpayer, not for every building.
- 3.The minimum commercial property taxes in Poland will be applicable for all buildings being rented or leased including hotels, warehouses and residential buildings, with an exemption for residential buildings connected with government programs related to social housing.
4. Special anti-tax avoidance clause regarding the minimum tax will be introduced- transfers made solely for the purpose of avoiding the commercial property tax in Poland will not be accepted by the tax administration.
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