Polish Deal will affect all property lessors

The changes provided for in the so-called “Polish Deal” will revolutionize the rules of taxation in the case of property lease. What do people who currently rent private flats or houses have to prepare themselves for?
It is true. The new regulations will oblige natural persons who do not conduct rental business to pay tax according to a registered lump sum, i.e. the tax will be paid on income, without the possibility of reducing it by costs. Until now, taxpayers had several options, including one frequently chosen – i.e. taxation according to the tax scale of income from lease and thus taxation of income less costs. As it was possible to settle depreciation, renovations, repairs, equipment or interest as costs, such a method of taxation was commonly used despite the fact that it required certain calculations and settlements.
Today, people using this form of settlement generally have to do some calculations – what will be more profitable for them in the future – whether, for example, opening a business and then basing on income with the costs associated with running it (apart from depreciation) or a registered lump sum. The registered lump sum involves taxing income and therefore assumes that costs are not taken into account. On the other hand, it assumes a lower tax rate. It amounts to 8.5% and in the case of the excess over PLN 100 thousand, it amounts to 12.5%. Since lump-sum taxation has been in place for many years and yet many taxpayers have opted for the general rules (tax scale), it is easy to deduce that the upcoming changes may be painful for many. On the other hand, there may also be a situation of global rental price increases as landlords may want to reflect the tax increase in the price.
When will these new regulations come into force?
Generally, the changes are to come into effect as of 1 January 2022. However, taxpayers earning income from private lease will be able to depreciate buildings and residential premises – acquired or constructed until the end of 2021 – for another year, i.e. until the end of 2022.

In the interview, moreover, about:
– changes in private lease,
– novelties that entrepreneurs must expect,
– new depreciation rules,
– the influence of the Polish Order on investments.

The entire interview was published in Rzeczpospolita of 5 November 2021, p. N4