Income of a closed-end investment fund from disposal of a commercial property may be subject to CIT exemption
According to the judgment of the Supreme Administrative Court of 27 June 2024, ref. II FSK 1287/21, income of closed-end investment funds, or specialised open-end investment funds applying the investment rules and restrictions specified for closed-end investment funds, from disposal of commercial real estate may be subject to CIT exemption. On the other hand, income from the lease and rental of such real estate will not be subject to CIT exemption.
Provisions on the reporting of tax schemes are inconsistent with the Constitution
The Constitutional Tribunal, in its ruling of 23 July 2024, ref. TK 13/20, stated that the provisions on mandatory disclosure rules, which required tax advisers to disclose information covered by professional secrecy, were inconsistent with the Polish Constitution. In particular, they violated tax advisers’ right to professional secrecy.
The supply of undeveloped plots of land designated for a park is not subject to VAT
In a judgment of 2 July 2024, ref. I SA/Gl 678/23, the Provincial Administrative Court in Gliwice stated that the supply of undeveloped plots of land designated for park greenery should not be subject to VAT. Although the zoning plan allows for certain sports and recreational facilities on this land, this does not change the fact that it is not a construction area.
Tax remitter’s obligations in the scope of using the WHT exemption
In a judgment of 2 July 2024, ref. III SA/Wa 973/24, the Provincial Administrative Court in Warsaw stated that in case of dividend payment of up to PLN 2 million the tax remitter may exercise due diligence in a simplified manner. For payments exceeding PLN 2 million, a full verification of the conditions that allow for the WHT exemption is required, including an examination of whether the recipient of the dividend is its beneficial owner.
Contribution of real estate to a capital company made by a family foundation is subject to CIT taxation
In a judgment of 8 May 2024, ref. III SA/Wa 597/24, the Provincial Administrative Court in Warsaw ruled that making an in-kind contribution of real estate to a limited liability company by a family foundation, acquired specifically for that purpose, results in taxation of 25% CIT, as this activity goes beyond the permissible scope of the foundation’s business activity.
Separated construction investment may constitute an organised part of the enterprise
In a judgment of 4 July 2024, ref. I SA/Łd 281/24, the Provincial Administrative Court in Łódź ruled that a separated construction investment, which has the ability to function and finance itself, constitutes an organised part of the enterprise.
Buildings used to provide hotel services are not subject to the minimum tax on buildings
In a judgment of 16 July 2024, ref. I SA/Po 291/24, the Provincial Administrative Court in Poznan stated that contracts for the provision of hotel services are not similar to lease or rental contracts. This means that buildings used for the provision of hotel services should not be subject to the minimum tax on buildings.
