Taxpayer of Real Estate Acquisition Tax Changes


On 5 August 2016, an amendment of the Real Estate Acquisition Tax Act effective as of 1 November 2016 was published in the Collection of Laws. The decisive date for the implementation of the amended wording is the day on which the tax liability arises. Therefore, the new amendment will apply to transactions where the legal effects of the property ownership change take place on or after 1 November 2016.

The main change is the change of the person of the taxpayer. At present, it is the seller who is regarded as the taxpayer in cases of standard purchase agreements, unless the parties explicitly agree otherwise. However, as of 1 November 2016, the choice of the taxpayer will be abolished and it will be always the acquirer of the property who is to be regarded as the taxpayer.

Following the above, the institute of the tax guarantor, which currently applies to the acquirer in cases where the seller is regarded as the taxpayer, will be abolished as well.


Download Newsletter October 2016