Changes to the Belka tax beneficial, but for small investors

Grzegorz Keler of Thedy & Partners comments on the matter for the portal. He points out that the changes in the Belka tax are necessary to increase the attractiveness of capital investments. Currently, some other forms of saving and investment, such as real estate, are taxed more preferentially. As a result, investors invest their money not on the stock market or in investment funds, but elsewhere. The capital market suffers, and consequently the economy, where capital from Poles’ savings does not go.

Of course, the ideal solution from the point of view of investors and the capital market would be to abolish capital gains tax. However, it should be borne in mind that capital gains tax is a significant source of revenue for the state budget – almost PLN 10 billion in 2023. It is hardly surprising that, in this situation, fiscal considerations take precedence over the tax’s stimulus function.

Announced exemption

Nevertheless, as part of the so-called 100 Concretes programme of the Civic Coalition, a tax exemption of up to PLN 100 000 per year was announced. According to the latest announcements of the Ministry of Finance, however, this amount is to be drastically reduced – to the product of this amount and the NBP deposit rate. In practice, this would mean that the current exemption limit for income from bonds or term deposits would be PLN 5250. The same would be the separate tax-free amount for income from equity investments. In fact, therefore, an individual taxpayer could benefit from a preference not exceeding PLN 2,000 in tax per year. Such an amount can be treated as a certain relief for taxpayers, especially the so-called small savers, but it can hardly be regarded as an incentive for capital investments. From a tax point of view, the purchase and rental of a flat will still be more favourable than an investment in, for example, shares in listed companies or bonds.

Savings package

The MF’s announcement of the introduction of a separate savings package, which would include income from term savings accounts and bonds, sounds rather enigmatic. Such packages are to be operated by financial institutions such as banks and SKOKs, but no longer by brokerage houses. The taxpayer is only supposed to accumulate savings in one such bundle, and the financial institution running the bundle is supposed to make sure that the tax exemption limit is not exceeded. It is not clear whether such a bundle is to be only a kind of record-keeping tool for tax purposes or whether, for example, it will be similar in nature to a brokerage account. In either case, the costs of implementing the new solution could be significant. Theoretically, they will be borne by the banks, but ultimately they will probably be passed on to customers.

Above all, however, the question is whether, if the taxpayer accumulates savings in various financial institutions, this will prevent him from benefiting from the exemption. Forcing taxpayers to use only one financial institution would negatively affect competition in the market.

For the time being, therefore, the plans for legislative changes raise serious doubts. They seem insufficient and at the same time potentially problematic from the point of view of their implementation. However, it must be remembered that at this stage we are only dealing with general information and announcements. We will only know the actual meaning of the changes to the Belka tax once the bill is published.

The entire article can be read here: Zmiany w podatku Belki – kto skorzysta? (prawo.pl)