Most businesses had to file their first reports on payment periods in commercial transactions on or before 1 July 2021. However, real estate companies will not have to make the filing until 2022 and their first-time filings will refer to 2021.

As you may remember, following amendments to the Excessive Delays in Commercial Transactions (Combating) Act of 8 March 2013 introduced by the Act of 19 July 2019 to amend various legislation in order to limit payment backlogs, by January 31st each year businesses are required to report to the minister competent in matters of the economy on the payment periods they applied in their commercial transactions in prior calendar year (“Report”). This reporting requirement applies to the taxpayer categories listed in Article 27b(2) of the CIT Act, being:

  • tax groups,
  • other taxpayers, other than tax groups, liable to income tax, if their revenue in the relevant tax year exceeded the PLN equivalent of EUR 50 million,
  • real estate companies.

The first reports had to be filed already for 2020, with 1 February 2021 as the filing deadline (31 January was a holiday). However, real estate companies were not added to the list in Article 27b(2) of the CIT Act until 1 January 2021, so they are not required to file Reports for 2020. This is confirmed in a communique on the website of the Ministry of Development, Labour and Technology. Accordingly, the first time real estate companies will have to file the Report will be by reference to 2021, with 31 January 2022 as the filing deadline.

A real estate company is any entity, other than a natural person, which is required to prepare its balance sheet and which meets all of these conditions:

– if it is a start-up:

  • as at the first day of the given tax (financial) year, the market value of real estate or rights in real estate situated in Poland represents, directly or indirectly, at least 50% of the market value of its assets, and
  • the market value of such real estate exceeds PLN 10 million;

– if it is already in business:

  • as at the last day of the year preceding the given tax (financial) year, the carrying amount of real estate or rights in real estate situated in Poland represents, directly or indirectly, at least 50% of the carrying amount of its assets, and
  • the market value of such real estate exceeds PLN 10 million; and
  • gross income from leases, sub-leases and similar contracts or from transfer of title to or right in real estate and from shares in other real estate companies represented at least 60% of its total gross income in such preceding year.

If this issue pertains to your business and you are interested in our assistance, please contact your WTS&SAJA consultant.

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