This is particularly important as the scope of 2024 reporting may differ from that in previous years. This follows from the judgment of the Voivodeship Administrative Court in Warsaw (WSA) of 16 October 2024, ref. no. III SA/Wa 1771/24, which confirmed the tax authorities’ recent unfavourable interpretative line. The ruling specifically concerns entities that hold real estate indirectly, through other companies.

Previously, when assessing whether a given entity met the definition of a real estate company, it was necessary to take into account the balance-sheet value of shares (stocks) in subsidiaries holding real estate. Currently, given the judgment of the WSA in Warsaw and the prevailing practice of the tax authorities, it will be necessary to consider the balance-sheet value of real estate held by subsidiaries.

In practice, this means that the approach applied to date must be reviewed and, if necessary, revised to determine the scope of both reporting entities and entities subject to reporting.

In view of the above, we encourage you to start preparations for real estate company reporting well in advance. We would be pleased to assist you in fulfilling the 2024 reporting obligations for real estate companies, including in:

• determining which entities meet the definition of a real estate company under the Corporate Income Tax Act, the latest practice of the tax authorities, and the relevant case law;
  
  
• verifying the scope of obligations to file information on entities holding rights in a real estate company (PIT-N1 and CIT-N1), as well as information on rights in a real estate company and intermediary entities (PIT-N2 and CIT-N2);
  
  
• preparing draft CIT-N1, CIT-N2, PIT-N1 and PIT-N2 information forms.