Based on the amendment to the Real Property Tax Act, in case of discrepancy between the data in the land registry and the actual state of affairs, the type of land recorded in the land registry prevails. Taxpayers who historically prepared their real property tax returns based on the actual state of affairs relating to their land may be required to file a tax return in 2021.
In mid-2020, the Chamber of Deputies was submitted the amendment to the Real Estate Tax Act, of which we informed you in our article Significant Amendment to the Real Property Tax Act. The amendment went through the approval process and the Act was published in the Collection of Deeds on 31 December 2020. In the 2021 taxation period, the deciding factor for land tax is the type of land recorded in the land registry as of 1 January of the year for which the tax is assessed, regardless of whether it corresponds to the actual state of affairs. Only in the case when the land registry does not specify the type of land in question, the actual state of affairs is the deciding factor for land tax purposes.
If a taxpayer historically proceeded based on the case law and specified the type of land in their real property tax return according the actual state of affairs, which was different from the data recorded in the land registry and the difference prevails as of 1 January 2021, a real property tax return should be filed for 2021, specifying the type of land corresponding to the data recorded in the land registry.
The standard deadline for filing a real property tax return is 31 January of the relevant calendar year. However, for 2021, the Ministry of Finance has informed in its Financial Bulletin No. 3/21 that due to the extraordinary pandemic situation, sanctions for delayed real property tax returns will be remitted provided that the tax return is filed no later than on 1 April 2021. For the sake of completeness, we note that the deadlines for tax payment remain unaffected.
If you are unsure whether this obligation applies to you or your company, or if you need assistance in the preparation of your real property tax return, please do not hesitate to contact us.