Real estate

From 2021, flat-rate rental tax also for entrepreneurs

On January 1, 2021, amendments to the provisions of the Act on the flat-rate income tax on certain revenues earned by natural persons of November 20, 1998 entered into force. They allow for the inclusion with the flat-rate tax also of revenues obtained from the rental of real estate by natural persons conducting business activity.

The flat-rate tax is 8.5% of revenues up to PLN 100,000 and 12.5% of revenues from the surplus over PLN 100,000. Until now, the application of the flat-rate tax for income from lease of real estate was possible only for natural persons who were not entrepreneurs. In practice, this gave rise to numerous disputes with the tax authorities which very often questioned the right to apply a flat-rate tax to persons who obtained income from private rental of a dozen or even several real estates, claiming that the scale of activity in such cases bore the hallmarks of economic activity.

It is expected that the introduced amendments will increase the number of taxpayers paying a flat-rate tax on rental income, in particular, that buying and renting private real estate has been the most popular form of investing by Poles in recent years.

Author team leader DKP Legal Marcin Kręglewski
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