As of 1 January 2025, amended regulations on real estate tax have come into force.
This is one of the largest amendments to this tax in recent years. What has changed?

• new definitions of a building and a structure have been introduced, independent of construction law,
• Annex No. 4 to the Act has been introduced, which lists certain categories of structures, such as, for example, free-standing industrial installations permanently connected to the land,
• legal definitions of permanent attachment to the land and construction works have been introduced.

The purpose of the amendments was primarily to eliminate interpretative doubts by referring — in the previously applicable definitions of a building and a structure — to the provisions of construction law. In other words, it was supposed to be simpler.

And what is the situation in practice?

Despite the autonomous definition of a structure, in practice there are many doubts and ambiguities regarding the correctness of taxation. This has occurred because, in particular, the definition of a structure contains many open and unexplained terms, such as, among others:

• construction devices, or
• technical devices.

The above expressions are very broad and therefore carry the risk that the tax authority may challenge the classification of various construction objects. This may consequently result in an increased tax burden.

Currently, for a given object to be considered, among others, a structure, it must be erected as a result of construction works. This approach was intended to contribute to limiting the scope of taxable items. Meanwhile, construction works have been defined as:
“works consisting in construction, reconstruction, extension, superstructure, alteration or assembly, to which the provisions of the Act of 7 July 1994 – Construction Law apply.”

Thus, the legislator has not fully abandoned references to the provisions of construction law and, moreover, has also recognized “assembly” as construction works, which may be interpreted broadly.

As a result, verification activities conducted by tax authorities are ongoing for many taxpayers, and a significant number of entities have not verified whether the amended regulations have affected, among other things, the real estate tax returns they submit.

If you have not yet assessed the impact of the amendment on your business activity, we encourage you to contact us — we will support you in this matter.