Newsletter: REal Knowledge about the Polish real estate market 1/2021
Welcome to the first edition of Deloitte REal Knowledge newsletter!
REal Knowledge about the Polish real estate market 1/2021
Welcome to the first edition of Deloitte REal Knowledge newsletter. Through this newsletter we would like to give you more information about the Polish real estate market. Topics will vary from tax and legal news, updates to other hot topics from across the Polish real estate sector.
We kick off with a first topic on withholding tax regime in Poland. Should we expect another deferral or amendment of the provision?
Secondly, we will provide more information on recent Constitutional Tribunal’s judgment on real estate tax.
Finally, we will zoom in on amendments to the CIT Act and its impact on disposal of real estate rich companies as well as obligation to prepare a tax strategy.
We wish you happy reading!
Withholding tax regime in Poland
Although new WHT regime has been introduced in Poland in 2019, pursuant to Ministry of Finance’s regulation issued on a semi-annual basis, certain provisions thereof are deferred until 30 June 2021. Should we expect another deferral or amendment of the provisions? If not, as of 1 July 2021, Polish tax remitters and foreign taxpayers of the Polish WHT should check if there are any additional obligations and requirements that need to be addressed.
Recent Constitutional Tribunal’s judgment on real estate tax
On 24 February 2021 Polish Constitutional Tribunal issued a judgment (no. SK 39/19) that may significantly impact the real estate tax (RET) charged on land, buildings and structures owned by entrepreneurs
Reconciliation of capital gains tax on disposal of a real estate rich company
Amendments to the CIT Act and its impact on disposal of real estate rich company
Obligation to prepare tax strategy
According to the amendments to the CIT Act effective as from 2021 (i) taxpayers whose revenues exceed EUR 50 million in a given fiscal year (e.g. in case of asset sale in SPV), (ii) tax capital groups are obliged to prepare and publish information on the execution of tax strategy.