Property tax

How can we help?

Tax reviews and asset inventories

We offer comprehensive property tax audits ( also agricultural tax, forestry tax), asset reviews combined with asset inventories. Experience shows that entrepreneurs with diverse and numerous real estate assets, including equipment/devices on foundations, industrial installations, tanks, reservoirs, transport and loading structures, linear objects can overpay property tax. Potential irregularities may be the result not only of past errors, but also of simplifications adopted in accounting for new investments, including asset deals, and due to changing positions of tax authorities, case law, as well as tax regulation and the Construction Law.

For the purpose of reviews, our standard activities consist of:

  • analysis of documentation (e.g. fixed asset register, extracts from the land and building register), notarial deeds, investment settlements, construction and as-built documentation),
  • visual inspection (site visit) of the property,
  • report with legal commentary,
  • requests for overpayments, adjustment of declarations, other steps related to the implementation of findings.

We have extensive experience in tax reviews. We have carried out projects for the largest Polish companies in the industrial, railway and energy sectors, including in the context of assets dispersed throughout the country.

Recovery of overpayments

A classic activity in the field of property tax is the recovery of overpayments in cases of overpayment of tax:

  • we represent clients as attorneys,
  • we prepare applications for overpayments,
  • we verify/prepare adjustments to property tax (also agricultural tax, forestry tax),
  • we conduct tax proceedings,
  • we are responsible for full contact with the office,
  • we recover interest on overpayments for our clients, if the authority has omitted this obligation.

We have recovered overpayments of multi-million amounts for our clients, including after court stages. We have successfully concluded hundreds of tax proceedings.

Conducting tax and court proceedings and supporting tax audits

We specialise in all types of proceedings:

  • we represent clients as attorneys-at-law,
  • we prepare appeals, complaints, cassation complaints and other pleadings,
  • we are responsible for full contact with the office/court,
  • we take part in various procedural actions (examination of witnesses, inspection, review of files),
  • we are attorneys in a real estate tax case pending before the EU Court of Justice in Luxembourg (exemption for railway infrastructure).

Settlement of investments (cost segregation)

Cost segregation is often a key step to correctly establish the scope and basis of property taxation. We are leading advisors in the field of cost segregation and account for shopping malls, office buildings, RES installations, industrial investments and hotels in this way.

We attach particular importance to the correct recording of fixed assets. In our experience, errors and simplifications in fixed asset registers negatively affect property tax, including resulting in investigations and tax audits.

#SEE MORE about cost segregation.

We also assist building owners with verification of the tax liability for the payment of the minimum tax on buildings and assist with the recovery of the minimum tax on income from buildings (minCIT) paid. We verify and/or establish the initial value of the building.

#SEE MORE about minimum tax recovery on buildings.

Requests for individual interpretations

Requests for individual interpretations are an often forgotten property tax remedy. In some cases, it is reasonable to make such a request to the municipal tax authority in order to confirm the correctness of one’s accounts / the applicable interpretation of the regulations.

A key element of the application is the correct presentation of the description of the facts. Omission of details, adoption of simplifications may affect the final decision, as well as the possible lack of legal protection resulting from the obtained interpretation.

  • We advise at the stage of determining the legitimacy of applying for an individual interpretation (e.g. in comparison with the option to apply for a statement of overpayment),
  • we prepare the contents of the application on the ORD-IN form,
  • we act as legal representatives,
  • we prepare complaints and cassation complaints.

Declarations and ongoing settlements

We offer services in the area of compliance. We advise on the preparation of initial tax returns as well as preparing cyclical returns. We can act as attorneys-at-law. We cooperate with accounting departments, including MDDP Outsourcing.

We also assist clients with specific issues that arise at the application stage, such as how to tax a particular asset. We keep abreast of the jurisprudence of the administrative courts as well as the Constitutional Court, which has a key impact on property tax practice. We have extensive experience in technical analysis, including from working with technical advisers. As a result, we take into account all aspects that may affect the proper application of the legislation. Often the issues are complex and involve decision-making risks on the part of taxpayers. We present all possible scenarios and consequences/risks for the taxpayer. This applies, for example, to the taxation of tanks.

Advertising tax and other local taxes

We also deal with other local taxes and charges:

  • agricultural tax,
  • forestry tax,
  • advertising tax,
  • tax on means of transport,
  • so-called rain tax,
  • local and spa tax,
  • fees for growth of value of property because of public plan changes
  • fees for perpetual usufruct.

Feel free to contact us

Rafał Kran

Partner | Tax adviser
E: rafal.kran@mddp.pl
T: +48 693 290 919

Łukasz Szatkowski

Manager
E: lukasz.szatkowski@mddp.pl
T: +48 570 898 499

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