Newsletter: REal Knowledge about the Polish real estate market 5/2022
Welcome to the Deloitte REal Knowledge newsletter!
REal Knowledge about the Polish real estate market 5/2022
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 CIT. We will also shed light to the decision of Polish Supreme Administrative Court on tax exemption for German real estate investment funds. Moreover, we will update you on WHT regulations effective as of 1st January 2022.
We have also prepared a list of selected deadlines for the main obligations that real estate rich companies are required to perform as a result of their business activities in the 2021 tax year. We hope it will be helpful.
Polish Supreme Administrative Court confirms availability of tax exemption for German real estate investment funds
In November 2021 the Supreme Administrative Court confirmed that revenue generated by real estate investment funds with their registered offices in Germany was exempt from income tax in Poland, provided it originated from investments carried out in Poland by limited liability companies.
CIT according to the New Polish Deal
Under “New Polish Deal” as of 1 January 2022 following an amendment to the CIT Act, surplus debt funding costs up to 30 percent of EBITDA generated in a given fiscal year or to PLN 3 million (the “safe harbor” cap) classify as tax-deductible expenses.
WHT pay and refund mechanism applicable to payments made on or after 1 January 2022
As of 1 January 2022, pursuant to an amendment to the CIT Act, a pay-and-refund (“P&R”) mechanism has been introduced in relation to certain amounts in excess of PLN 2 million transferred to a single related party being a foreign tax resident.
Deadlines applicable to real estate rich companies
In the article you will find selected deadlines for the main obligations that real estate rich companies are required to perform as a result of their business activities in the 2021 tax year.