From the beginning of 2025, the definition of “building” used for Polish real estate tax purposes will change.

A facility raised as a result of construction works that:

• is equipped with installations ensuring its intended use
• is permanently attached to the ground
• is permanently separated from the space with building partitions
• has foundations and a roof.

Exclusions

The definition of a “building” does not include a facility in which bulk materials, materials in pieces, or materials in liquid or gaseous form are or can be stored, if the primary technical parameter determining the structure’s purpose is its capacity.

A facility permanently attached to the ground is one that has a physical connection to the ground, providing stability and protection against external factors.

It is not sufficient to simply place an object on the ground; a permanent connection is required.

The definition of a structure has been divided into five categories, that do not refer to the definition stated in the Polish Construction Law Act.

Annex no. 4 has been developed, containing a closed catalogue of facilities considered to be structures.

These include facilities erected as a result of construction works, even if they are part of a structure not specified in the Act:

• Foundations for machines and devices, technically separate from them
• Construction parts of technical devices
• Construction parts of construction devices
• Construction parts of wind farms and nuclear power plants, photovoltaic power plants, agricultural biogas plants, energy storage facilities, boilers, industrial furnaces, cableways, ski lifts and ski jumps, in the part that is not a building.

The facilities listed in Annex No. 4 to the Act, as well as installations ensuring their intended use, are included.

An object permanently attached to the ground is one that has a physical connection to the ground, providing stability and protection against external factors.

It is not enough to just place an object on the ground; a permanent connection is required.

Exceptions: Mobile objects, such as containers, that are not permanently attached to the ground do not meet this definition.

1. Outdoor sports facility other than those listed in item 2

2. Stadium field, players’ tunnel, stands – included in the stadium

3. Amphitheater

4. Raw water tank, process hall, treated water retention tank, wash water clarifier – included in the water treatment plant

5. Catchment station, treated wastewater pumping station, primary settling tank, secondary settling tank, biological reactor, aerobic chamber, separation chamber, hypoxic chamber, anaerobic chamber, gravity thickener, sludge dewatering installation, degassing installation, excessive sludge thickening station, acetic acid dosing station, filtrate liquid equalization tank, pumping station for recirculated and excessive sludge, predenitrification chamber – included in the wastewater treatment plant

6. A facility in which bulk materials, materials occurring in pieces or materials in liquid or gaseous form are or can be stored,

the basic technical parameter of which determining its purpose is its capacity, other than those listed in item 4 and item 5

10. Container facility permanently attached to the ground

11. Shed excluding sheds listed in Article 1a (1) item 2a (C)

12. Pole foundation for cable line, foundation, support structure, free-standing antenna mast, free-standing tower, telecom rack, telecom pole – included in the telecommunications network

16. Road, entrance, exit from the road, parking bay

18. Bridge, overpass, flyover, culvert, crossing;

24. Parking lot outside the building, parking area, storage area, dumpster area, driveway, canopy

25. Free-standing: tower, mast, outdoor lighting, and free-standing permanently attached to the ground: industrial installation other than those listed in the Annex, billboard, advertising device

28. Tent cover, inflatable shell, shooting range, street kiosk, street sales pavilion, exhibition pavilion – permanently attached to the ground

The proposed definition of structures is aimed at preserving the fiscal status quo of the scope of taxation as much as possible, by transferring the objects indicated in the Construction Law, which are structures, and construction equipment to the proposed Annex No. 4 to the Law on Local Taxes and Fees, which contains a catalog of structures, and to Article 1a(1)(2)(b-e).

Most taxpayers will be able to take advantage of the extended deadline for filing a tax return under the new rules – March 2025.

It is the taxpayer’s responsibility to correctly classify individual objects for real estate tax purposes.

• In the case of structures, the tax base very often results from the inclusion of a particular object in the depreciation table for CIT purposes
• In the case of infrastructure facilities, ESG facilities and transmission infrastructure, in some cases the changes expand the scope of taxation
• The new concept of permanent connection to the ground results in an expansion of the scope of taxation.

• Preparation of opinions and classification for tax purposes of individual objects
• Preparation of calculations and the first tax return under the new legislation
• Conducting a comprehensive analysis (cost segregation) involving the classification of assets for tax purposes, both for CIT and real estate tax.