Real Estate Tax (RET) in Poland is not only a fiscal burden, but brings many other challenges
Laws governing RET and other local taxes have been in place for over 25 years, but the many changes along the way have drastically changed their initial shape. In addition, not only the laws are changing, but also the judicature varies greatly. On the other hand companies often pay little attention to RET, focusing on other taxes such as CIT or VAT. Although the calculation of RET may seem simple, companies often make mistakes in interpreting the law and overpay the amount due. We estimate, that most firms could recover 15-20% of overpaid tax, which can be recovered up to 5 years back.
Most common challenges in RET
- Inconclusive regulations
- Differing interpretation of law in municipalities
- Differing interpretation of law in municipalities
- Taxation regardless of usage
- Double role of municipalities - beneficiary and decision maker
Inconclusive regulations
Solutions: In reality the way RET works in Poland is regulated by court practice. Companies need to constantly monitor judicature and refrain from making hastly decisions based on one court sentence. It is also worthwile to periodically review filed returns
Differing interpretation of law in municipalities
Solution: Make sure to use a unified approach to to making calculations. Firs of all try to identify cases, where similar assets are taxed differently
Double role of municipalities - beneficiary and decision maker
Solution: The situation, in which the body issuing decision is simultaneously their beneficiary is uncommon. When starting a recovery proceeding it is worth remembering that our goal is the correction of a previous mistake and the correctness of our returns, not financial gain.
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