Minimum tax on buildings

There is a special tax on comercial buildings in Poland known as the minimum tax on buildings (minCIT) and being a part of income tax settlement. This applies to the companies in various sectors that own and rent buildings (commercial, office, warehouses, hotels). The intricacy of the regulations and the constant changes in the law introduce many uncertainties when accounting for this tax. For landlords with large property portfolios, this tax is particularly onerous and represents a significant burden on their finances.

How can we help?

We determine the tax liability depending on the industry, the properties owned and the use of the property

In doubtful cases we request individual binding rulings

We assist in the ongoing calculation of tax and its proper reporting in income tax returns

We determine the tax bases, including the so-called rental ratio

Verify and/or establish the initial value of the building (including cost segregation procedure)

Verify and/or establish the initial value of the building (including cost segregation procedure)

The tax refund

The minCIT paid can be reclaimed. Claims for overpayment in 2022 can be made after filing the CIT-8 for 2022. It is also still possible to claim a tax refund for 2018-2020.

The process is governed by a new procedure whereby the tax offices no longer issue a refund decision, but  an investigation and verification of the setllements are still conducted.

At MDDP, we have a 100% success rate in obtaining refunds to date. We have successfully completed dozens of proceedings with a total value of refunds of nearly PLN 30 million.

Action steps

Stage I
Verification of the CIT result and minCIT calculation

What are we investigating?

  • The CIT result for the tax year especially in areas of particular interest to the tax authorities in the context of refund proceedings;
  • Key areas of CIT: debt financing costs, limit on intangible services, TP documentation, initial value of a building, transition from balance sheet to tax result;
  • MinCIT settlements.

Why is this important?

  • Minimising the risk of the authority refusing to refund or initiating assessment proceedings (if the authority detects material irregularities);
  • Verification of whether a CIT-8 correction is needed before filing;
  • Acquisition of data for proposal preparation;
  • Analysis and preparation of data for subsequent proceedings, making them run more smoothly.
Stage II
Preparation of the application
  • A motion and key annexes;
  • Verification of minCIT settlement in basic terms (if Stage I is omitted).
Stage III
Refund proceedings
  • Representation of the taxpayer before the authority;
  • Conducting correspondence with the authority;
  • Support when the taxpayer acts personally.

Feel free to contact us

Justyna Bauta-Szostak

Partner | Tax adviser | Attorney at Law
T: +48 502 241 631

Rafał Kran

Partner | Tax adviser
T: +48 693 290 919