Tax me anyway

By introducing the new regulations, the Ministry of Finance intends to tighten up the tax system. In the opinion of the Ministry, until now taxes from the real estate sector paid into the budget have not been commensurate with the profitability of this sector. The Ministry estimates that the return on investment in real estate is 5–7 pct per year, and yet no income tax is paid on many properties. This tax applies to commercial and service buildings such as shopping centres, department stores, independent shops and boutiques, other commercial and service facilities as well as office buildings. The classification of a building is based on the classification of the fixed assets. The tax does not apply to other buildings, for example: hotels, warehouses or residential real estate. Interestingly, it does not apply to separate premises designated for commercial or service purposes, as the regulations stipulate that each building is itself the subject of taxation. The tax is levied on