The real estate tax framework has been significantly modified as of 1 January 2025 with the coming into effect of major amendments to the Local Taxes and Levies Act.
Now local authorities are clearly stepping up their efforts to verify real estate tax returns for 2025. They thoroughly analyse disclosures filed by taxpayers and increasingly often contact them for explanations. What is more, the scrutiny extends not just to 2025 but also to prior years (even up to 5 years back), meaning taxpayers have to painstakingly backtrack their information to resolve any inconsistencies in their returns across the years.
Below are some typical issues that arise during those audits:
- Buildings etc. reported for 2025 but not for prior years.
- Buildings etc. removed from the 2025 return after having been reported in earlier years.
- Whether the tax return duly reflects all the buildings etc. otherwise included in the company’s register of tangibles.
- Change of reported classification (building vs. structure) between 2024 and 2025.
What can you do to prepare for such an audit or respond to one that is already pending?
- Check the tax classification of all your buildings (budynki) and structures (budowle) in light of the regulatory changes effective as of 2025.
- Verify if your infrastructure first reported as structures in 2025 should have been taxed as such also in previous years.
- Consult your tax advisor if in doubt about classification.
The increased auditing efforts by the authorities in the wake of changes in law require businesses to use special care in preparing and reviewing their real estate filings. We recommend taking comprehensive action to get ready for potential inquiries from tax authorities, and using professional advice in case of doubt. We will be happy to support you in analysing, interpreting and resolving any issues connected with the new regulations.
If this matter pertains to your business and you are interested in our assistance, please contact us.