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
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