PZFD is calling for the delay of the Polish Deal
20:55
The Polish Association of Developers (PZFD) has handed over to the Ministry of Finance the position of the PZFD regarding the planned tax changes under the Polish Deal.
According to the current wording of the draft, the proposed tax regulations will apply from January 1, 2022. In the opinion of PZFD, the proposed date of entry into force of the new regulations is grossly short, taking into account the complexity of the changes introduced. Tax consultations ended on August 30, 2021. However, even with the express pace of passing the regulations, taxpayers will not be able to prepare for changes or adjust accounting systems.
Therefore, PZFD requests that the entry into force of the Polish Deal should be postponed to at least January 1, 2023, to enable taxpayers to properly prepare for the change.
In the opinion of PZFD, the effects of the proposed solutions to the development industry – especially about the Private Rent Sector (PRS) – should be assessed negatively.
“PZFD in the letter sent to the ministry referred mainly to the problem of depreciation in real estate companies. It is about commercial real estate for rent and investment real estate. In both cases, these are long-term and costly projects, the rate of return of which is calculated on a multi-annual basis. For this reason, PZFD has no doubts that the implementation of the proposed regulations will shake the commercial and investment real estate market, as the reduction of tax depreciation was not included in the investment plans," Sebastian Juszczak, PZFD lawyer, emphasized.
The proposed change will, to the greatest extent, affect entities that have depreciation of buildings and residential premises. The draft provides for the exclusion from tax costs of depreciation write-offs for buildings and residential premises, both on the grounds of PIT and CIT. Expenses incurred for the purchase of buildings and residential premises will constitute a tax-deductible cost only at the time of their sale (as in the case of land real estate).
