Property tax revolution
Did you know that the current definition of real estate has been declared unconstitutional? It will lose its validity at the end of 2024. That’s why now is a good time to follow the progression of the situation and prepare for changes.
What can you do now to prepare for the upcoming property tax changes? How to secure your assets?
It is advisable to start preparing now – with us. We will guide you safely and effectively through the entire process and prepare you for the proper, safe and most beneficial taxation of your assets under the new regulations.
What you will gain by choosing the support of ALTO experts?
- With our help, you’ll file the correct declaration for PoN 2025 – without the stress of interpreting the regulations correctly.
- Our years of experience working with clients and dealing with tax authorities will give you peace of mind. We have already dealt with many situations similar to yours – no matter how complicated it may be.
- You will find out whether you overpaid tax in previous years and successfully recover the overpayment. You will also put your assets in order and hedge possible risks so that nothing surprises you in the future.
- We will provide you with up-to-date information on the status of the legislative process related to property tax changes. As ALTO, we will also take part in public consultations on the proposed changes and offer suggestions specific to your industry as well.
What activities we can help with right now?
- Review of assets for proper property taxation, identifying savings, hedging possible tax risks. This will allow to agree on what should be taxed and what should not be from 2025 onward. It is worth remembering that in January 2025, it will not be possible to simply rewrite the data from last year’s declaration, and the correct declaration of assets in 2025 will also translate into settlements in the following years. Hence, this is a very important year.
- Inventory of assets, which will simultaneously identify savings and hedge any risks associated with the existing PON taxation.
- Representation in assessment and overpayment proceedings concerning real estate tax.
- Tax settlement of newly emerging investments both in terms of CIT (recognition of emerging assets as fixed assets, assignment of the group according to the Classification of Fixed Assets (KŚT) and depreciation rates; assistance in determining the correct initial value of fixed assets) and PON (determination of taxable objects, assistance in determining tax bases, determination of the tax obligation moment) in the most beneficial and safe manner for the taxpayer.
Any questions?
Property tax – uncertainties in every industry
Property tax is the bane of many taxpayers. Industries such as energy, industry and real estate development particularly feel its burden, but the complexity of regulation affects every taxpayer. Regulatory ambiguities, inconsistencies in interpretations and dynamic legal changes make it an area that requires special attention and expertise.
In fact, few people can find their way around its regulations. While it should be the other way around. This tax is, after all, only a few regulations. But what seems simple causes the most problems in practice. Because these “several regulations,” especially those concerning the objects of taxation, including its queen – structures, are vague. And no one knows one hundred percent which objects should be taxed and which should not.
Property tax regulations also do not give taxpayers the comfort of uniform taxation of all their property located in the country, as some equipment is only taxable in certain municipalities.
That is why it is so important to have the support of experts who are familiar not only with the regulations, but also with the practice of the authorities. Our experts have visited more than one power plant or manufacturing plant, so the perspective of the entrepreneur is also not foreign to them.
What characterizes property tax?
- It’s a wealth tax – taxpayers’ wealth is taxed (but not all of it).
- The subject of taxation is currently determined mainly by the Construction Law.
- It is the most unconstitutional tax – the Constitutional Court has issued the most rulings precisely on the provisions concerning it.
- It is the most casuistic tax, and the scope of taxation is established not by the regulations themselves, but by the case law of administrative courts.
Why property tax is burdensome for businessmen?
- Businessmen pay it at the highest rates.
- Businessmen pay for an additional object of taxation against those who are not businessmen – for structures.
- Structures are taxed on their original value without taking into account the capital allowances – which means they are always taxed as if they were so-called “new” – even when the object (fixed asset) has already fully depreciated. The tax is an eternal optimist – when an entrepreneur sees a worn-out tank, it is still like new in the eyes of the tax authority with jurisdiction over the PON and is taxed at its original value.
- The businessman does not even have to use the property for his business – it is enough that he owns it, as an entrepreneur – it is immediately subject to taxation at the highest rates.