In 2025 a controversial change in Polish taxation law came into force. The amendment of the Act on Local Taxes and Fees introduces a barrier taxation which is now treated as a "building". The fresh government raises many controversy and questions, especially among entrepreneurs who will be forced to pay this fee. In the article we will take a closer look at this fresh load, its rules and influence on companies in Poland.
Garden tax: erstwhile and who will it touch?
The barrier taxation became a subject of broad discussion after the amendment of the Act entered into force. According to its records, the barrier is treated as part of the property that entrepreneurs will gotta tax. Furthermore, taxation concerns the first value of the barrier and not its marketplace value. This means that entrepreneurs will pay 2% of the amount they paid for the fence.
For example, if the company invested PLN 30 1000 in building a barrier around its workshop, the taxation will amount to PLN 600. The value of the fence However, it will be estimated on the basis of the costs of its construction alternatively than the current marketplace value that may change. This means that the burden will apply to entrepreneurs having fences around their utility facilities specified as warehouses, workshops, shops, or kindergartens. However, the taxation does not apply to private homeswhere business activity is carried out in the form of an accounting office or dental office.
Increase in the number of entrepreneurs amazed by the fresh legislation
Business reactions to this fresh taxation were clear – surprise and surprise. Most of them were unaware that specified a burden would occur. In talks with journalists, entrepreneurs stated that they did not anticipate specified a fee. Jarosław Chrabąszcz, the owner of the car repair plant, says: “The first time I heard about this was from you. A garage barrier tax? Nothing surprises me in this country anymore, but I gotta ask my accountant what is going on.”
The representatives of barrier companies besides admit that the fresh regulations surprise them. On the 1 hand, entrepreneurs will gotta take into account fresh charges erstwhile calculating the cost of building fences, which will affect product prices. Changes may besides affect investment decisions, especially among tiny companies that operate in little financially-burdened locations.
When can an entrepreneur anticipate a taxation exemption?
Under the fresh regulations, entrepreneurs can number on exemption from barrier taxation in respective cases. In particular, fences of wind or gazebos shall not be treated as a permanent building unless they are permanently linked to the ground. In addition, churches and another spiritual establishments engaged in business activities will not be obliged to pay this tax, which results from the taxation credit to these institutions.
In turn, entrepreneurs operating in residential housing, specified as accounting offices is dental officethey can besides number on exemption from the work to pay this tax. In specified a situation, the barrier is treated as part of a residential premises alternatively than a utility building. Entrepreneurs However, they must guarantee that the fences are not included in the fixed assets records, which could in that case require payment of the tax.
A taxation That Controversies
The fresh barrier taxation raises wide doubts, not only among entrepreneurs, but besides among taxation experts. Piotr Juszczyk, taxation advisor, in an interview with money.pl noted that the thought of introducing a barrier taxation is "curiosal" and it is hard to realize why the legislature decided to make specified a change. The expert besides points to similarities to the so-called. window taxwhich was utilized in England in the 17th century. At that time the taxation depended on the number of windows going out onto the street. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mr Juszczyk besides pointed out the anticipation of further problems with the fresh legislation, pointing out that Ministry of Finance should give a clear position on fences. Amendments may lead to further ambiguity which will only make life hard for entrepreneurs.
What effects can the barrier taxation have?
Experts note that barrier taxation can have far-reaching effects for both entrepreneurs and the economy. Tax will increase operating costs companies, especially those with extended fenced areas. On the another hand, this can affect investment decisions of entrepreneurs who, in the face of additional costs, can limit the expansion of their companies.
However, it must not be forgotten that the revision of the rules besides has a affirmative effect which may affect the improvement of the construction sector. New fences may become more complex to implement, which will increase request for construction services. Time will show how the taxation will affect the improvement of the barrier marketplace and investment decisions in Poland.
Continued here:
The barrier tax. Everyone will gotta pay.
