The Council of Ministers has adopted proposed amendments to the Local Taxes and Fees Act, which could come into force on 1 January 2025! 📅
What do the changes consist of? 👇
They will mainly involve a change in the wording of the definitions of the terms ‘structure’ and ‘building’.
🏢 New definition of building: An object erected as a result of construction works, permanently attached to the ground, with foundations and a roof.
The above definition – despite the efforts of the legislator and the expansion of the statutory glossary – is not a clear definition, requiring additional interpretation of the provisions and the use of the provisions of other laws.
🏗️ New definition of a structure: A structure will be any object that is not a building and is listed in Schedule 4 to the Act or in the definition, including: power plants, railway lines, energy storage facilities, boilers, sewage treatment plants as complex facilities, amphitheatres and stadiums that are heterogeneous facilities, and foundations for machinery and technical equipment.
The conclusion? For entrepreneurs, a significant part of the facilities will be subject to a higher property tax rate! 📈
With reference to the above, the changes will particularly cover objects that have so far been treated as buildings. The legislator plans to explicitly classify them into the category of structures.
🔄 What else will change?
- Garages – simplified taxation rules for both single and multi-car garages 🚗.
- Exclusion of small architectural objects from taxation (e.g. pergolas, playgrounds, statues, bins) 🌳.
- Extension of the deadline for entrepreneurs to submit tax returns until 31 March 2025 🗓️, giving more time to comply with the new regulations.
