Supreme Administrative Court of Poland has adopted a key resolution regarding the property tax rate that a company should pay when it rents a flat to an individual. The decision resolves the divergence in case law as to whether the higher business-specific rate or the lower residential rate applies in such cases. The SAC held that if the tenant uses the premises for residential purposes and does not carry out business activities, the lower residential rate should apply.
The resolution was based on requests from KWKR law firm experts to the Attorney General and the SME Ombudsman, acting on behalf of a long-standing client, Van der Vorm Vastgoed. Our client had been struggling with various contradictory court rulings on the tax rate for a long time, but thanks to our actions we finally managed to have a favourable resolution issued by 7 judges of the Supreme Administrative Court, which we hope will lead to a unification of the jurisprudence of courts and tax authorities. This decision is a breakthrough that will directly contribute to the development of Van der Vorm Vastgoed’s activities in Poland.
The case was supervised on the part of KWKR by managing partner Marcin Wierzbicki and partner Łukasz Łanoszka. It was also advised by associate Karolina Suchoń-Kawalec. Associate Radosław Urban advised on tax matters.