Poland: Real estate investment by family foundation qualifies for tax exemption; transfer pricing rules apply to taxpayers under Estonian CIT scheme

Summaries of recent Supreme Administrative Court decisions

The Supreme Administrative Court recently held that:

A family foundation’s sale of real estate held for at least 10 years to generate passive income (e.g., rental income) does not constitute a business activity excluded from the tax exemption (case file II FSK 1010/25).
Transfer pricing rules apply to taxpayers applying the Estonian CIT scheme (also known as the "lump-sum tax on corporate income," which allows companies to defer tax on retained earnings until profits are distributed to shareholders) because the legislature excluded only specific tax provisions under the scheme, and transfer pricing rules are not among the exclusions (case file II FSK 694/23).

In addition, the Anti-Tax Avoidance Council published an opinion regarding a series of transactions involving a closed-end investment fund (CEIF). The Council found that the main, or one of the main, objectives of the actions undertaken was to obtain a tax benefit and that the taxpayer’s arrangements were artificial.

Read a February 2026 report prepared by the KPMG member firm in Poland

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Poland: Real estate investment by family foundation qualifies for tax exemption; transfer pricing rules apply to taxpayers under Estonian CIT scheme

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