March 31 is the deadline for submitting the statements regarding real estate companies

By March 31, 2022[1], real estate companies and their shareholders / partners must file information on:

• in the case of information provided by real estate companies – entities owning, directly or indirectly, shares along with the number of such participation rights held by each of them
• in the case of information provided by shareholders (partners) of real estate companies – the number of shares.

Shares are also understood to mean shares, an aggregate of rights and obligations, titles or rights of a similar nature.

The disclosure must be submitted electronically to the Head of the National Tax Administration within 3 months from the end of the tax year.

Definition of real estate company

A real estate company means an entity other than natural person, obliged to prepare a balance sheet in line with provisions on accounting, in which:

• for entities commencing their business activity – as at the first day of the tax year, at least 50% of the market value of assets (directly or indirectly) consisted of real estate located in Poland or rights thereto, with the value exceeding PLN 10m; or
• for other entities as at the last day of the year preceding the tax (financial) year:
• at least 50% of the book value of assets (directly or indirectly) consisted of real estate located in Poland or rights thereto,
• with the book value exceeding PLN 10m or an equivalent amount determined according to the relevant exchange rate; and
• in the year preceding the tax (financial) year, taxable revenues (revenues included in the net financial income) from:
• letting, subletting, lease (and other similar contracts); and/or
• from the transfer of ownership to real estate or rights thereto, and from shares in other real estate companies,

constituted at least 60% of total taxable revenues (revenues included in the net financial income).

The definition of real estate company refers to the entity’s asset structure, meaning that it can also be met by entities which do not have legal personality, nor are income taxpayers.

Shareholders / partners disclosure obligations

Who must submit information

Polish regulations provide new disclosure obligations on:

• real estate companies and
• taxpayers (partners / shareholders) holding, directly or indirectly, at least 5% of the voting rights in a real estate company or all rights and obligations, giving at least 5% of the right to participate in the profit of a company that is not a legal person, or at least 5% of the total number of participation units or rights of a similar nature thereto.

How can we help?

If you wish, we can assist you with the above reporting obligations for real estate companies and their shareholders / partners, in particular:

• we will explain the scope of information to be reported,
• we will indicate the entities and the scope of their reporting obligations,
• we will assist you in preparing and submitting reports to the Head of National Tax Administration.

[1] assuming that the tax year coincides with the calendar year. For companies having a different fiscal year, the deadline for filing the statements is the end of the third month after the end of the real estate company’s fiscal year.

 

 

If you are interested in discussing what this precedential judgment may in practice mean for your business, please do not hesitate to contact us:

Justyna Bauta-Szostak	Justyna.Bauta-Szostak@mddp.pl	+48 502 241 631
Gniewomir Parzyjagła	Gniewomir.Parzyjaga@mddp.pl	+48 664 718 736