On November 27, 2025, the Minister of Finance and Economy issued a general interpretation (no. DPL2.8401.3.2025) aimed at standardizing the application of regulations regarding the taxation of land, buildings, and structures related to business activities. This document represents a significant step towards protecting taxpayers from excessive fiscal burdens, as it highlights erroneous practices by some tax authorities.
Not every entrepreneur's property is related to business activity
For years, tax authorities often applied only the literal interpretation of the Local Taxes and Fees Act. It was assumed that the mere fact that a business owned real estate was sufficient to impose a higher tax rate on it.
However, the Minister of Finance indicated that such an approach is unacceptable from the perspective of constitutional values, including the protection of property rights (Article 64 of the Polish Constitution). According to the new interpretation, the systemic and functional context cannot be ignored in the interpretation process. This means that additional circumstances regarding the taxpayer's status and the manner of using the assets must be analyzed.
Three groups of taxpayers – assessment principles
The interpretation identifies three key situations in which the relationship between real estate and business activity should be assessed:
- Entrepreneurs conducting only business activities:
In the case of commercial companies or other legal entities whose sole purpose is business, all owned real estate is generally considered related to that business. Even temporary decommissioning does not alter their tax classification.
- Taxpayers in a dual role:
- Individuals: They must keep their personal and business assets separate. Only property that is actually used or can be used in the business is considered business-related.
- Legal entities with a mixed profile : This applies, for example, to foundations or companies that also conduct agricultural activities. In these cases, the highest tax rates apply only to the portion of their assets that serves commercial purposes.
- Real estate transferred into possession to another entrepreneur:
If a person who does not conduct business activity gives possession of real estate to an entrepreneur, this may result in it being deemed to be related to business activity.
What does it mean for a property to be “available for use”?
The Ministry has clarified the key phrase "may be used." This refers to situations in which the entrepreneur takes actual action to prepare, preserve, or secure the property for future or interrupted operations. A significant indicator here is the incurrence of expenses, which are accounted for as tax-deductible costs.
Protection for taxpayers
A general tax ruling serves a protective function. According to the Tax Ordinance, complying with it before a potential change cannot be detrimental to the taxpayer. This is intended to ensure predictability of settlements and legal security for entities conducting business.
In summary, the new interpretation requires tax authorities to assess each case individually, taking into account not only who owns the property, but above all its actual or potential connection with the business.
This article is for informational purposes only and does not constitute legal advice.
The law is current as of January 5, 2026.
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