Good news from National Revenue Administration regarding family foundations!

Anna Skowron

Tomasz Wilk

It will be welcomed by those who have already set up a family foundation and those yet considering it.

The head of National Revenue Administration issued two assurance opinions on the taxation of family foundations.

Both involved a similar scenario:

1. A family foundation was set up with the founder contributing to it certain assets, including shares in some companies.
   2. The foundation sold the shares to a third party and invested the proceeds in permitted foundation business (in accordance with Article 5 of the Family Foundation Act).

All in all, the authorities confirmed that such transactions do not amount to tax evasion and are fully within the bounds of permitted family foundation activities.

But is there any tax advantage in that? Yes, there is. And quite substantial at that, with the founder benefiting more than if they sold the same shares directly.

The NRA opinions are another important step towards building a safe and predictable family foundation practice in Poland.