Yesterday we witnessed the publication of the latest, i.e. third, of a series of drafts proposing amendments to the Real Estate Tax Act (“RETA”) which are supposed to take effect as of 1 January 2025.
Compared to the prior proposal from early September, now the Finance Ministry would like to make such changes as:
- modifying the definition of a structure (budowla), including by:
- adding to the list of built features considered structures as per Schedule 4 to the act (e.g. membrane canopies or inflatable roofs permanently attached to the ground);
- elaborating upon/modifying the description of certain items already on the list;
- making sure that any building ancillary infrastructures or mechanicals are only treated as structures for tax purposes if they are directly connected with a building or a structure listed in the law and are necessary for using it as intended;
- withdrawing from restrictions on RETA exemption for airports;
- creating a statutory definition of construction work.
Comparing to the previous version, this draft does not seek to change the definition of a building and keeps the previously proposed extension of time to file RETA returns for 2025 until 31 March 2025.
The proposal is now being processed by the Standing Committee of the Cabinet. Given the amount of time left for the amendments to become effective on 1 January 2025, no further larger modifications to the proposal should be expected looking forward.
We will keep you up-to-date on the progress of this legislation.
If this issue pertains to your business and you are interested in our assistance, please contact us.
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