In less than a month, the extended deadline for reporting information on the ownership structure of the real estate company expires. To 30 September 2022 both real estate companies and their partners are required to provide information on their shares.
Year 2022 is first the year in which real estate companies and their partners are required to submit special information. Therefore, it is worth paying particular attention to the statutory definition of the real estate company so that there is an unconscious failure to submit appropriate declarations.
Real estate companies become companies in which the carrying amount of the property exceeds 10,000,000 PLN and simultaneously exceeds 50% the carrying amount of the assets.
According to the literal wording of the legislation, the statutory definition distinguishes between situations where we are dealing with an entity starting business and an entity continuing business activity.
The definition of these companies was created for a reason – entities that fulfil the above criteria are eligible for additional public-law obligations.
According to Article 27(1e) CIT Act and Article 45(1f) The PIT Act of the Company and its shareholders are obliged to transfer ownership structures to the Head of the National Tax Administration. This obligation must be fulfilled by real estate companies and their partners who have:
- - shares or shares giving at least 5% voting rights,
- - all rights and obligations giving at least 5% rights to participate in profit,
- - at least 5% the total number of participation titles or similar rights.
A little more than a month before the deadline for submission of such information on the e-declaration website[1] interactive forms for real estate companies and their partners have been published: CIT-N1, CIT-N2, PIT-N1, PIT-N2.
Minister of Finance by Regulation of 13 July 2022 (Journal of Laws, item 1507) appointed authorities of the National Tax Administration (KAS) to carry out the tasks of the Head of the KAS in the field of reception, handling and sharing of information with other authorities.
The forms to be sent must contain information on entities which have at least 5% voting rights in the company or in general rights and obligations which give at least 5% the right to participate in the profit of a company which is not a legal person, or at least 5% the total number of participation titles or similar rights.
Unfortunately, doubts may arise already at the stage of selecting the appropriate declaration. As mentioned earlier, the reporting obligation lies with both the company and its partners. For example, we have a limited liability company, partners of which are individuals.
The company meets the statutory criteria for qualifying as a real estate company, which means that it will be obliged to send a declaration CIT-N1. In turn, partners of a company that are natural persons are obliged to provide information about their shares in a company on the form PIT-N2.
[1] https://www.podatki.gov.pl/pit/e-deklaracje
Author: Darya Bannaya. Younger tax consultant. Graduate of Law at the Faculty of Law and Administration of the University of Warsaw, graduate of Global Business, Finance and Management in Warsaw School of Economics. Winner of the Ministry of Finance competition “Tax of Leaders” 7. edition.
Conducting trainings and conferences for foreigners in tax aspects of conducting and establishing business in Poland. He specializes in tax law, advising clients on current matters relating primarily to income taxes. Author and co-author of a tax law publication.