Prawo.pl: Business residential leases with 29 times the tax rate
Large cities already charge the highest tax rate on rented flats if the owner is an entrepreneur or runs a so-called short-term lease, according to local government responses to Prawo.pl. Cities refer to the position of the Ministry of Finance and the ministry to changes in case law. However, according to experts, such a high rate does not result from the legislation. In practice, it is the tenants who will pay, writes the Prawo.pl portal.
– This is an erroneous approach which, firstly, is not in line with the regulations. Secondly, the Ministry of Finance and local tax authorities refer to the case law of the Supreme Administrative Court, which, however, is changing. Thirdly, it is irrelevant that the owner has made the flat available as part of his business activity. The key point is that a residential function is performed in the flat. We can only speak of occupation for the purpose of business activity in the situation of its actual physical occupation, i.e. carrying out business activity in the premises – Michał Nielepkowicz, tax adviser, partner in the law firm Thedy & Partners, tells the portal Prawo.pl.
According to Michał Nielepkowicz, charging the highest real estate tax rate is unjustified both in the case of long-term and short-term lease. This is because, in practice, it would be very difficult to determine at what point short-term renting ends and long-term renting begins – the key is meeting housing needs.
This approach means in practice large rent increases. – These increases will place an additional burden on tenants. However, it should be borne in mind that under Article 75 of the Constitution, public authorities are obliged to pursue a policy conducive to meeting the housing needs of citizens – says Michal Nielepkowicz.
– I believe that under the current regulations, landlords of residential properties should pay a lower residential tax rate. However, if the Ministry is considering changes, it would make sense to clarify the regulations so that they are no longer questionable – says Michal Nielepkowicz.
The entire article can be read at this link: Podatek od nieruchomości wynajmowanych w działalności gospodarczej (prawo.pl)