EconPapers    
Economics at your fingertips  
 

Tax neutrality at leasing or rural farms

Violetta Skrodzka ()
Additional contact information
Violetta Skrodzka: Gdynia Maritime University

Ekonomia i Prawo, 2017, vol. 16, issue 3, 343-353

Abstract: Motivation: One of the forms of investing by individuals is real estate. The scope of the quoted content including properties in the form of agricultural land. Until May 1, 2016, any individual could become the owner of agricultural land in Poland. The free purchase of agricultural land was limited by the restrictive provisions of Act on shaping the agricultural system (2003) of April 11, 2003. The change of regulations concerning the free trade of agricultural properties did not result (although it tends to do) in the fact that agricultural land remain only in the hands of farmers. Individuals who have acquired land before May, 2016 and are not related to agriculture can lease or rent the land to others. The received rent is a financial advantage that is treated in a special way by the tax law. The benefits obtained by leasing by a natural person not related to agriculture are treated as personal income tax on a preferential basis. Aim: The purpose of this article is to analyze the taxation of income earned by leasing or renting agricultural properties to third parties. Results: The remuneration received from a lease of a farm or its components for agricultural purposes is not a source of income in terms of personal income tax. Revenues earned from renting or leasing properties to third parties for non-agricultural purposes are subject to personal income tax. In this case, the rent received is a source of personal income and must be reported to the appropriate tax office.

Keywords: lease; farm; agricultural activity; income tax on leased agricultural land for agricultural and non-agricultural purposes; Poland (search for similar items in EconPapers)
JEL-codes: K11 K12 K34 Q10 Q15 (search for similar items in EconPapers)
Date: 2017
References: View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.12775/EiP.2017.024 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpn:umkeip:v:16:y:2017:i:3:p:343-353

Access Statistics for this article

Ekonomia i Prawo is currently edited by Barbara Polszakiewicz and Jerzy Boehlke

More articles in Ekonomia i Prawo from Uniwersytet Mikolaja Kopernika
Series data maintained by Miroslawa Buczynska ().

 
Page updated 2018-02-02
Handle: RePEc:cpn:umkeip:v:16:y:2017:i:3:p:343-353