The Ministry of Finance has published a new version of the draft amendments to the property tax. The new regulations assume that only the construction part of photovoltaic power plants, energy storage facilities, industrial furnaces, cable railways or ski lifts will be taxed. – The new version of the draft act on local taxes returns to linking tax regulations with construction law – indicated a tax expert from the MDDP law firm Rafał Kran. He explained that the changes assume, among other things, that buildings and structures must be objects erected as a result of construction works.
Ministry of Finance on the website of the Government Legislation Centre published a new version of the draft act amending the Act on Agricultural Tax, the Act on Local Taxes and Fees, the Act on Forestry Tax and the Act on Stamp Duty.
As Kran assessed, “the changes are relatively large.”
The government is preparing changes in taxes
– Directionally, it should be assessed that they do not aim to increase burdens, although everything depends on the structure of the taxpayer's assets. The key thing is that the premise of “technical and utility totality” has been abandoned, on the basis of which municipalities could demand tax not only on construction objects, but also on various technical components, including computers and electronic devices – stated Rafał Kran.
In his opinion, the industry benefits the most from the new version of the project. Renewable energy. He pointed out that the industry “managed to include in the regulations the taxation of photovoltaic power plants and energy storage facilities only on construction parts.”
– Property tax will not therefore be a brake on the development of this industry. Similar postulates from conventional and water energy have not been taken into account. The ski industry should also be satisfied. Ski lifts are to be taxed only on construction parts, excluding from the tax base, e.g. chairs or gondolas. Small architectural objects, e.g. bicycle shelters, are not to be directly subject to the tax – said the expert.
“It seemed, therefore, that the new tax regulation would break these connections”
He recalled that the main reason why the Ministry of Finance began preparing changes to the Local Tax Act was the ruling of the Constitutional Tribunal. It questioned the use of the definitions of structures and buildings, as recorded in the construction law, for tax purposes.
– It seemed that the new tax regulation would break with these connections. The new version of the project surprisingly returns to the close connection between the property tax and the Construction Law, although in a different way. Buildings and structures must be objects erected as a result of construction works. On the one hand, this should eliminate strictly technical elements from taxation, which are only subject to assembly. On the other hand, much will depend on the construction documentation (or lack thereof) and the practices of the construction administration, which may vary – said the tax advisor.
He also pointed out that the new version of the bill returned to the category of construction equipment as a type of structure. In his opinion, this category is “not very precise”.
– Up until now, this has been one of the main areas of dispute. The first version of the project abandoned this category, and in the latest one it is included again, although in a slightly changed form. The new project also does not sufficiently specify the scope of separate taxation of structures in buildings, which is particularly important for the industrial sector using complex industrial installations. It can be assumed that disputes in this area will not cease – Kran stated.
He said if the changes are to come into force next year, there is little time left for them to be passed by Parliament.
– The new wording of the regulations is to enter into force from 2025, if there is no delay at the parliamentary stage. The act must be published in the Journal of Laws by the end of November this year – said Kran.
“We appreciate the changes included in the project”
“The new draft of changes to the real estate tax, presented by the Ministry of Finance, takes into account the postulates of entrepreneurs. The proposed changes to the definition of a building and structure will not increase taxation and will achieve the goal of simplifying the regulations while maintaining the 'tax status quo',” she stated in a legal statement. Confederation Leviathan.
– We are pleased that during the public consultations the Ministry of Finance took into account many comments and postulates of entrepreneurs. The regulations that gave rise to concerns about a significant increase in the taxation of corporate assets have been corrected. From the beginning, we indicated that in addition to buildings and structures, various types of technical devices, peripheral devices of telecommunications and energy networks and renewable energy installations may be taxed. We appreciate the changes included in the project, their introduction shows how important dialogue and in-depth consultations are – emphasized Przemysław Pruszyński, tax advisor, director of the tax department of the Lewiatan Confederation, quoted in the press release.
He also added: – We also positively assess the provision allowing for the extension of the deadline for submitting a property tax return for 2025 to March 31 of last year, thanks to which companies will have two months more to inventory and analyze their assets in terms of the new regulations.
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