Suspension of operations and real estate tax

An entrepreneur deciding to suspend activities should remember that non-residential buildings, structures and land are subject to income tax in accordance with the higher rates provided for business activities, also during the suspension. According to the regulations, the commune may, however, adopt a resolution according to which these rates will be reduced, taking into account the upper limits of the rates applicable in a given tax year.

According to the opinion of the Minister of Finance, in the period of non-performance of economic activity by the entrepreneur, land, buildings and structures are still in his possession and are subject to real estate tax at higher rates.

This view is also based on the rich jurisprudence of administrative courts (e.g. judgment of April 3, 2012, reference number I SA / Bd 24/12, judgment of February 2, 2011, reference number I SA / Gd 1028/10, judgment of September 10, 2009, reference number I SA / OI 474/09).

In response to the parliamentary question 17438/13, the minister also explained that the commune may resolve the issue of applying lower rates during the suspension of activity. The commune councils have the right to differentiate real estate tax rates, taking into account the way of using the taxed items. In a resolution, communes may specify lower real estate tax rates applicable during the period of suspension of activity.
Moreover, pursuant to Art. 7 sec. 3 of the Act on Local Taxes and Fees, the commune council is entitled to introduce, also by way of a resolution, non-statutory real estate tax exemptions, including, for example, taxable items during the period of suspension of economic activity - also taking into account the provisions on assistance public.