With use of yearly depreciation rates specified in the appendix no. 1 to Polish CIT or PIT act respectively.

Standard tax depreciation rates may be increased for extraordinary wear and tear.

Depreciation rates may be set individually, subject to certain limitations, for used or improved non-residential buildings and premises or constructions, which are for the first time put into service by a given taxpayer.

Tax deductible depreciation write-offs from investment properties made by 'real estate companies' (as defined in the Polish CIT Act) may not be higher in a given tax year than accounting depreciation write-offs thereof.

N/A;

impairment losses are not relevant for tax depreciation purposes

Non-residential buildings and premises are generally subject to standard yearly tax depreciation rate of up to 2.5%. Certain buildings are subject to depreciation rates from 2.5% to 10%.

Depreciation rates may be increased for extraordinary wear and tear or set individually for used or improved assets for the first time put into service by a given taxpayer.

Tax deductible depreciation write-offs from investment properties made by 'real estate companies' (as defined in the Polish CIT Act) may not be higher in a given tax year than accounting depreciation write-offs thereof.

Income from sale of operative real estate, irrespective of the holding period, is basically treated as derived from business activity. Different classification for sales of residential buildings or premises, where such sales is not subject of operational activity of the taxpayer.

Income from private sales of real estate, is taxable only in the case where sales occured within 5 years counting from the end of the year in which its acqusition or construction took place.

Lump sum taxation of revenues (with no deduction of related costs): (a) mandatory for private rent, (b) optional for taxpayers whose business activities are focused on the purchase and sales of properties.

Income derived by individuals from business - including sale of non-residential properties or residential too, if this is subject to taxpayer's buisness activity - is basically subject to progressive taxation based on tax scale or to optional 19% flat-rate taxation.

Certain professionals may apply lump sum taxation of revenues, e.g. 10% lump sum tax rate for revenues of the taxpayers whose business activities are focused on the purchase and sales of properties.

Income derived from sales of residential properties (where it is not subject of operational activity of business) as well as private sales of properties is taxable by 19% tax rate.

Private rent - is subject to 8.5% or 12.5% lum sum taxation (12.5 rate applies to revenues from rent exceeding PLN 100,000)

Private sale of real estate is not subject to taxation if sales occured after 5 years counting from the end of the year in which its acqusition or construction took place.

If private sales occurs before mentioned 5-years-period, income from sales will be tax exempt in part which will be exepended for taxpayer's own residential purposes within 3 years from the end of the year in which sales took place.

Tax exemption also applies to sale of real estate as a result of official intervention and sale of real estate obtained in the course of reallocation or compensation procedures.

Property in Poland:

(a) real estate (land, buildings or parts thereof),

(b) constructions related with business activity.

Basis of assessment are:

(a) for land - area,

(b) for buildings and parts thereof - useable area,

(c) for constructions or parts thereof - base for tax depreciation as of 1 January of given year.

Property tax rates are determined and announced by local authorities. However, maximum statutory rates are i.a.:

(a) for land used for business purposes: PLN 1.16 / m2,

(b) for residential buildings or parts thereof: PLN 1 / m2,

(c) for buildings or parts thereof, incl. residential, related with or occupied for business purposes: PLN 28.78 / m2,

(d) for constructions - 2% of base for tax depreciation.

Agricultural or forestry land, not used for business purposes, is subject to separate taxation by respectively agricultural or forestry tax.

Basis of assesment for TCLT purposes is market value of asset.

2% - TCLT from sale of immovable property

For sale of shares in real estate company - potentially 1% TCLT might apply where sale of shares is considered not subject to VAT or is considered VAT exempted.

Property in Poland:
(a) real estate (land, buildings or parts thereof),
(b) constructions related with business activity.

Basis of assessment are:
(a) for land - area,
(b) for buildings and parts thereof - useable area,
(c) for constructions or parts thereof - base for tax depreciation as of 1 January of given year.

Property tax rates are determined and announced by local authorities. However, maximum statutory rates are i.a.:
(a) for land used for business purposes: PLN 1.34 / m2,
(b) for residential buildings or parts thereof: PLN 1.15 / m2,
(c) for buildings or parts thereof, incl. residential, related with or occupied for business purposes: PLN 33.10 / m2,
(d) for constructions - 2% of base for tax depreciation.

Agricultural or forestry land, not used for business purposes, is subject to separate taxation by respectively agricultural or forestry tax.

General rule: tax exemption of income of investement funds (incl. foreign ones), with some restrictions to be observed as to closed-end investment funds.

However, exemption does not apply to income of investment fund from owned or co-owned buildings located in Poland, rented or leased. Then standard rules for CIT taxation apply.

Profit distribution and liquidity gains are subject to standard rules for withholding taxation with 19% CIT / PIT rate or lower tax rate per applicable DTA as well as potential WHT restrictions provided for intra-group payments; potentially WHT exemption of profit distribution based on EU Parent-Subsidiary Directive for intra-group purposes.

Capital gains are subject to standard taxation.

Capital losses are tax deductible, with rules for loss carryforwards against capital gains.