Both tax depreciation and real estate tax burden correspond linearly to the gross value of constructions, hence proper balance is required
Both depreciation and real estate tax base value of constructions, thus balance is needed
We assist clients who develop real estate properties in the tax settlement of development costs aiming at identifying fixed assets which are subject to tax depreciation and assets which are subject to Polish property tax. The purpose of the exercise is to appropriately classify assets that the net positive effect of tax depreciation write offs and the property tax burden is maximised. The result of our work is a complete list of assets identified along with the applicable tax depreciation rates and specification of assets subject to property tax with particular attention to infrastructure, where the property tax is 2% of the gross value for CIT purposes.