Time to audit your company’s real estate tax accounts
Bearing in mind the changing jurisprudence and increasing rates, it is worth conducting a comprehensive review of the real estate tax paid in the coming months, which may bring tangible benefits to the company - says Paweł Wyporski, tax advisor, senior consultant at Thedy & Partners, in an interview with the portal Forum Polskiej Gospodarki.
From next year, taxpayers face another – and significant – increase in real estate tax. Why is it so important to establish the tax base correctly?
It is true, in 2024 the maximum real estate tax rates will increase significantly. As an example, it should be pointed out that the currently binding rate of PLN 1.16 per square metre of land connected with business activity will increase next year and will already amount to PLN 1.34, and per square metre of the usable area of buildings or their parts connected with business activity, the rate will increase from PLN 28.78 to even PLN 33.10. The increase in rates will proportionately translate into higher tax liabilities, so it is worth taking care to ensure that the tax is declared correctly, so as to avoid a situation in which the taxpayer overpays the tax or, worse still, exposes himself to severe interest due to incorrectly calculated tax.
The amount of real estate tax is significantly influenced by the case law of the administrative courts. Is this a valid thesis?
Absolutely yes. In practice, it is not enough for taxpayers to be familiar with the provisions of the Local Taxes and Fees Act in order to submit their declaration correctly. In recent months, we have seen a veritable rash of very significant rulings that can give rise to tax savings.
Can we give an example?
Of course. Mention should be made, first of all, of the landmark judgment of the Constitutional Tribunal of 4 July 2023 (ref. SK 14/21), in which the entire definition of a structure was deemed unconstitutional, or the judgment of the Supreme Administrative Court of 12 July 2023 (ref. III FSK 250/23), in which the court broke the line of rulings unfavourable to taxpayers and explicitly stated that an entrepreneur who rents property used for residential purposes does not have to apply the highest real estate tax rate to that property.
The entire interview can be read at this link: Czas na audyt rozliczeń podatku od nieruchomości w firmie [WYWIAD] – Forum Polskiej Gospodarki (fpg24.pl)