Poland: New draft legislation on family foundations

Introduces a new taxation model

Introduces a new taxation model

The government published on 8 November 2022 new draft legislation on family foundations.

The main goal of the proposed legislation is to:

  • Introduce family foundations into the Polish legal framework
  • Facilitate family business succession, as well as accumulating and securing family assets
  • Create a more favorable taxation method

Draft legislation was previously published in October 2021. Read TaxNewsFlash. Compared to that version, the new draft legislation introduces a new taxation model, a separate register of family foundations, rules for protecting personal data processed by family foundations and principles of “legitim” liability.

Under the draft legislation, family foundations would enjoy a subjective exemption from corporate income tax, which would cover free-of-charge acquisitions of assets (e.g., from the founder (providing a family foundation with assets will be tax-neutral)), as well as income obtained by the family foundation from the permissible activities it carries out.

However, no exemption will be available from income tax for payments made by the foundation to a beneficiary or a founder, as well as on property transferred in connection with the dissolution of the family foundation. The tax will be set at 15% of the value of payments rendered or made available by the foundation, directly or indirectly, to the beneficiary or the founder or of the revenue corresponding to the value of property transferred to support development of the family foundation.

New regulations on family foundations would become effective three months after promulgation. 

Read a November 2022 report prepared by the KPMG member firm in Poland


The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.