Real estate tax in 2016

As we have informed you last year, the amendment to the Real Estate Tax Act came into effect on 1 January 2016. It will affect the real estate tax returns submitted for the 2016 tax period. The dead line for submitting the real estate tax return is 1 February 2016.

The Ministry of Finance published on their web pages detailed information on some changes related to the amendment (here). You should be aware of the changes that may trigger the obligation to file a new tax return due to a change affecting the amount of the tax:

• The subject of the tax on buildings and units is now also a part of a building or infrastructure construction stated in the addendum to the Act or part of a unit if it is completed or used, which influences also taxation of plots of land as a subject of the land tax (e.g. only a part of the building was officially approved and it became a subject of the building tax; the rest of the construction is not completed).

• Termination of land for building as a subject of the land tax which relates to the origin of a taxable unit that is the subject of the tax on buildings and units (e.g. the gradual completion of units during more than one taxable period).

• Changes in the taxation of land for building where tax exempt buildings will be built.

• Assessment of the tax rate on commercial buildings and units with respect to their classification in an entrepreneur's business asset.