Property tax changes – companies should act quickly
Property tax declaration (DN-1) – until when in 2025?
Changes to real estate tax were introduced by the amendment of 19 November 2024 to the Acts on agricultural tax, on local taxes and fees, and on stamp duty, published in the Journal of Laws. It introduces precise definitions of key concepts, such as building or construction, but its scope is much broader. That is why the Minister of Finance decided to give entrepreneurs more time to submit the DN-1 declaration this year. Let us recall that the deadline for its submission was January 31.
In 2025, legal entities have slightly more time to submit the DN-1 declaration – the deadline has been extended to March 31.
Important! The condition for using the extension is:
- Submitting an appropriate written notification to the commune head, mayor or president by the end of January 2025, and
- Calculation and payment of real estate tax instalments based on the average monthly tax amount for 2024 for:
- January - until January 31, 2025
- February - until February 15, 2025
- March - until March 15, 2025
There is no special form/print that must be used to notify about the use of the extension of the deadline, a regular letter must be sent. It is enough that it is delivered, there is no need to wait for formal consent.
In addition, from April 2025, entrepreneurs will pay tax according to the submitted declaration. Any underpayments for January-March will be settled by March 31.
Property tax 2025 – new definition of a construction and building
The extension of the deadline will allow entrepreneurs to better understand the new definitions of building and construction. They are no longer directly related to the provisions of the building law but result from the amendment to the Act on Local Taxes and Fees.
Definition of building
Building – a structure erected as a result of construction works, together with installations ensuring the possibility of its use in accordance with its intended purpose, permanently connected to the ground, separated from space by means of building partitions and which has foundations and a roof, excluding a structure in which bulk materials, materials in pieces or materials in liquid or gaseous form are or can be collected, the basic technical parameter of which determining its intended use is the capacity.
Definition of construction
Construction:
a) a structure other than a building, listed in Annex No. 4 to the Act, together with installations ensuring its intended use,
b) a wind farm, a nuclear power plant, a photovoltaic power plant, a biogas plant, an agricultural biogas plant, an energy storage facility, a boiler, an industrial furnace, a cable car, a ski lift and a ski jump, in the part that is not a building – only in the scope of their construction parts,
c) construction equipment – a connection and installation device, including one for the treatment or collection of sewage, and another technical device directly connected with the building or facility referred to in letter a, necessary for their use in accordance with their intended purpose,
d) a technical device other than that mentioned in letters a–c – only in terms of its construction parts,
e) foundations for machines and technical devices, as technically separate parts of objects constituting a usable whole
– erected as a result of construction works, even if they constitute part of a structure not specified in the Act.
To sum up the changes in definitions, a building is a structure that meets several conditions: it is permanently attached to the ground, has foundations and a roof, is separated from the space by means of building partitions and is equipped with installations necessary for its use. However, a building is not a building if it is used primarily for storing bulk, liquid or gaseous materials. A building is taxed according to floor area.
A construction is a structure that does not meet all the conditions required to be recognized as a building but is listed in Annex 4 to the Act and was erected as a result of construction works. An example of a structure may be, for example, a container permanently attached to the ground. A structure is taxed according to its value.
The Act entered into force on 1 January 2025.
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