Newsletter: REal Knowledge about the Polish real estate market 4/2021
Welcome to the fourth edition of Deloitte REal Knowledge newsletter!
REal Knowledge about the Polish real estate market 4/2021
Welcome to the 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.
In this edition we will talk about New Polish Deal and its impact on depreciation of commercial properties.
Moreover, we will shed light to the new amendment to the CIT Act which introduces a minimum corporate income tax to be imposed on the companies.
We will also provide more information on two VAT subjects – structured e-invoices and so-called SLIM VAT 2 regulation – optional VAT taxation of real estate sale possible in notarial deed.
Furthermore, we will describe the act on pre-emption right of the property.
Finally, we encourage you to discover our latest report Polish Powers of Construction 2021 (in Polish).
We wish you happy reading!
Impact of New Polish Deal on depreciation of commercial properties
Polish taxpayers are allowed to decrease the corporate income tax base by depreciation deductions made on commercial properties. Does the Polish Deal change this rule?
New Minimum CIT
Companies should analyze whether they meet the criteria to apply the new minimum CIT, especially if they are subject to the minimum real estate tax – which is a separate charge, unrelated to minimum CIT.
On October 29th 2021, the Polish Parliament adopted a new law on structured e-invoices and the National System of e-Invoices (Polish: “Krajowy System E-faktur”, “KSeF”). The new legislation will come into force as of the beginning of 2022, with structured e-invoices applied voluntarily during the transition period. According to the Ministry of Finance, the new law will reduce the burden placed on entrepreneurs, in addition to producing a number of other benefits for taxpayers.
SLIM VAT 2 – optional VAT taxation of real estate sale now possible in notarial deed
The so-called Slim VAT 2 regulations came into force in Poland on October 1st, 2021. According to the Ministry of Finance, their purpose is to make it easier for taxpayers to settle VAT liabilities. An important change concerns the real estate market: as of 1st October parties to a real estate transaction may resign from the VAT exemption including an appropriate statement directly in the notarial deed.
Pre-emption right of the property
A number of risks may be identified during real estate due diligence, which may, at various levels, affect the planned transaction to varying degrees. One of the most important issues for a planned investment is the existence and preservation of pre-emption rights (contractual or statutory) regarding the real estate. Find out more!