Real estate
13:56 12 March 2018
Post by: WBJ

REAL ESTATE INVESTMENT: Taxes

Real estate transaction market responds to tax amendments

REAL ESTATE INVESTMENT: Taxes

BEPS, ATAD, EBITDA, MINIMAL CIT, VAT REFUND, SPLIT PAYMENT - These are terms that have frequently appeared in the context of recent Polish taxation amendments, which affected not only real estate transactions but also their structuring. The market has finally worked out the tools and mechanisms to facilitate the security of tax aspects in real estate transactions. Without doubt, there has been a visible shift from hitherto prevailing asset deals to other transaction types, such as share deals (acquisition of assets in a company) and enterprise deals (acquisition of an enterprise based on real estate assets). The market also expects the VAT split payment mechanism to be introduced into the Polish system, which will allow VAT risk value on some transactions to be reduced by eliminating a VAT sanction component.

A particular obstacle for investors in Poland is the transitional provisions, which may imply that more than one tax regime could be imposed simultaneously, particularly in the scope of “thin capitalization” restrictions, or the manner of loss utilization. Indeed, we can observe the increase in the scope complexity of DD tax reviews and tax contractual clauses. On the other hand, transaction structuring and the maintenance phase of real estate portfolios have been reduced by structures like debt-push-down, which, starting this year, do not allow investors to use a tax shield on interests. Luckily, this does not impede investors’ acquisition plans and the build-up of real estate supply by developers in Poland.

taxes

More News

lifestyle

LifeStyle
2 days ago

‘It is difficult to predict all the effects of the metaverse now’: an expert

LifeStyle
4 days ago

The famous singer to be charged with inciting fraud

LifeStyle
19 days ago

'With my actions and statements, I want to inspire my sons first and foremost': Małgorzata Rozenek

LifeStyle
26 days ago

‘The line between hatred and opinion is quite clear’: Lanberry

Book of Lists

Book of Lists
11 months ago

The largest Polish companies under the Book of Lists microscope! Book of Lists 2020/2021 certificates have been awarded.

Book of Lists
1 year ago

25th jubilee edition of Book of Lists – project start

advertisement