Important changes in the real estate tax framework took effect in January. Among other things, the new law redefines buildings and structures and modifies the tax treatment of complex facilities. As it happens, businesses are facing numerous challenges trying to comply with the changes:

  • No time to prepare – the new law was enacted as late as November 2024 and entered into force already in January 2025, leaving businesses with little time to adjust.
  • No interpretative clarity – there are new definitions and tax treatments that give rise to a lot of uncertainty, especially as regards the classification of buildings and structures and the assessment basis.
  • Complex asset review process – businesses need to carefully check which of their infrastructure assets are subject to the new rules and how their taxation changes.
  • Liquidity impacts – the new regulations will increase the tax for many companies which, if not appropriately prepared, may experience negative impacts on their budgets.
  • No clear guidance – even though the new law is already in force, businesses are yet to see any official interpretations or positions from tax authorities, a lack that hinders proper tax compliance.

All that goes to show how big a challenge these tax changes are. Firms did not manage to prepare for the new law on time, with interpretative doubts exacerbating the situation even further. Industries expected to take the greatest brunt are already requesting a postponement of the compliance deadline. This clearly shows that there wasn’t enough time to prepare while the extent of the changes calls for a longer transitional period.

It is advisable to monitor those developments.