MDDP advised European Student Housing Fund II on its latest transaction on the PBSA market
MDDP advised European Student Housing Fund II on its latest
Cost segregation is the detailed separation of fixed assets from investments based on:
and determining the initial values of fixed assets taking into account the full pool of capital expenditure (CapEx).
Differentiation of tax and balance sheet depreciation rates. | Increase in monthly depreciation write-offs by up to 2.5 times compared to an investment where only the building and basic structures (car park, fencing) were separated. |
Reliable and accurate fixed asset records. | High quality tax and accounting records. |
Real Estate clause in DTT. | Reduction of the fixed asset ratio for the purposes of the “real estate company” and the Real Estate clause. |
ESG taxonomy. | Matching of assets to prepare reliable ESG taxonomy disclosures. |
Minimum income tax on commercial property. | Lower tax base due to lower value of the building itself. |
Preparation of the real estate for sale. | Transparent fixed asset structure and better due diligence results from the buyer. |
Inventory of assets. | Review of assets and ability to professionally label fixed assets. |
Real estate tax review. | Possible reduction of the tax base for structures. |
Fixed asset (group) | Initial value | Depreciation rate | Depreciation | Minimum tax | ||||
Before | After | Before | After | Before | After | Before | After | |
Building | 100 m | 66 m | 2,5% | 2,5% | 2,5 m | 1,65 m | 378 k | 235 k |
Ventilation and air conditioning | 10 m | 10,0% | 1 m | |||||
Telecommunication systems | 9 m | 10,0% | 0,9 m | |||||
Electrical Switchgear | 7 m | 10,0% | 0,7 m | |||||
Power generators | 2 m | 14,0% | 0,28 m | |||||
External buildings | 6 m | 4,5% | 0,27 m | |||||
Depreciation write-offs per year | 2,5 m | 4,8 m |
Increase in depreciation write-offs in 1 year by PLN 2.3 million (nearly 2 times).
Minimum tax encumbrance reduced by PLN 143 k.
Partner | Tax adviser
E: rafal.kran@mddp.pl
T: +48 693 290 919
Manager
E: lukasz.szatkowski@mddp.pl
T: +48 570 898 499
MDDP advised European Student Housing Fund II on its latest
EFS Conference on legal protection in indirect tax and customs
At the beginning of 2025, changes to the regulations regarding