Rzeczpospolita: The Polish Law takes away the tax benefits of renting from tax firms

Entrepreneurs earning on housing will pay more to the tax office. They will no longer settle the costs of their purchase in the tax costs. Earnings on private renting will also lose. This is to be forbidden by the Polish Order – reports “Rzeczpospolita” on Tuesday.

“Entrepreneurs will not be able to depreciate housing because of this they will not deduct the costs and pay more to the tax office“- says” Rzeczpospolita “a tax advisor at GTA Grzegorz Gębka.

The newspapers point out that the ban is to apply from January 1 next year. “Right to Depreciation those entrepreneurs who have already bought flats and assumed that they would be able to settle them profitably will also lose. This is a change of rules during the game, “notes tax advisor at Andersen Aleksandra Kalinowska.

“In the amendment to the PIT Act presented by the Ministry of Finance, there is a regulation that excludes from depreciation for economic activity, leased or rented residential buildings, residential premises constituting a separate real estate, cooperative ownership right to a dwelling and the right to a single-family house in a housing cooperative” – ​​we read .

The newspaper notes that “if this regulation comes into force, neither entrepreneurs, nor private landlords (they will be deprived of the right to deduct at all), will not depreciate the flat anymore.

According to “Rzeczpospolita”, the tax office introduces this ban because “tax offices do not like the tax benefits from renting”.

“Residential real estate benefits from double preferences in PIT” – writes the Ministry of Finance in the justification to the draft. The newspaper also reminds that the purchase of an apartment can be settled as costs, and when selling it (after five years), you do not have to show any income, hence the talk of “using double preferences”.

“Suppose an entrepreneur bought several apartments. If they were used for at least five years before the acquisition, he could amortize them quickly, even in ten years. He included the write-offs as an expense. This allowed him to pay less tax (or even at all) on the rent. sell flats and pay nothing to the tax office “- notes Grzegorz Gębka. However, after the changes, there will be no depreciation costs. “If someone has these costs, for example PLN 20 thousand per month and pays a flat PIT tax return, he will lose PLN 3.8 thousand each month” – calculates the tax advisor.

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