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Planned RET Amendments in Poland

On 28 June 2017, an official bill amending the Renewable Energy Sources Act and certain other acts (including the Act on Wind Farm Investments), was published on the website of the Government Centre for Legislation. One of the material amendments provided by the draft regards the rules of real property taxation of wind power plants.

Under the bill, the definition of a construction structure will return to the shape that was in force until 15 July 2016, which means that it will be clearly stated that only the building part of a wind power plant is a construction structure. Secondly, the appendix to the Building Law Act will clearly state that only the building part of a wind power plant is a building object (a construction structure is one of the building objects). Last, but not least, the Act on Wind Farm Investments will clearly indicate that a wind power plant consists of a building (a mast and foundation) and a technical part. Taking into account the planned amendments, according the justification of the bill, only the building part of a wind power plant will be subject to real property taxation.

Entry into force

The bill foresees that it will come into force on 1 September 2017 (with minor exceptions, not pertaining to provisions influencing real property taxation rules). According to the justification of the bill, the planned amendments with respect to real property taxation will influence real property taxation rules starting from 1 October 2017.

Our perspective

The planned amendments regarding real property taxation of wind power plants are positive for the whole wind energy industry, as it is clear that the aim of the bill is to lower the real property tax burden imposed on wind farm investors. On the other hand, these amendments tend to confirm that in fact the real property taxation rules that have been in force starting from 1 January 2017, have indeed been amended in a manner leading to a very significant increase of the yearly real property tax burden for wind farm investors (and not just clarifying the interpretation doubts that have arisen in the last months). As the shape of the bill is subject to further legislative process, it is advisable to closely monitor amendments to the bill.

Copyright 2020 K & L Gates


About this Author

Adrian Jonca, KL Gates, Tax Litigation Lawyer, Poland, Evasion Investigations Attorney

Adrian Jonca is a partner in the firm’s Warsaw office. He focuses his practice on tax matters and has extensive experience in tax litigation proceedings at both the trial and appellate levels. He regularly acts as a tax advisor for foreign companies in Poland and represents tax payers in VAT and CIT matters, capital duty disputes, and other tax claims. In addition, he represents management in employment litigation and related tax matters, including investigation of allegations due to tax fraud or tax evasion.

Karol Lasocki, KL Gates Law Firm, Energy and Environment Attorney

Karol Lasocki PhD is a member of the global energy and environmental protection practice as well as the global competition practice. He heads the innovative energy and environmental protection team in Warsaw. Karol represents leading energy companies in the process of planning, development, interconnection, financing and construction of energy sources. His expertise focuses on renewable energy sources, clean conventional technologies, grids (grid access and construction) and competition matters (cartels and abuse of dominant position), including precedent-setting disputes. Significant areas of Karol’s activity are also environmental, administrative and spatial planning disputes.

Katarzyna J. Stec, KL Gates, tax planning attorney, restructuring projects lawyer

Ms. Stec is a senior associate in the firm’s Warsaw office. She focuses her practice on national and international tax law, particularly corporate income tax, personal income tax, VAT and transfer tax (capital duty). Her practice focuses on on-going and transactional tax advisory, tax planning and restructuring projects, tax litigation in front of tax authorities and administrative courts, administrative enforcement proceedings with respect to tax arrears as well as tax review and due diligence projects.

Prior to joining K&L Gates, Ms. Stec...