Contribution of shares to a family foundation does not generate income
A taxpayer's contribution of assets, including shares, to a family foundation to cover the foundation's initial fund will not generate income for the taxpayer, according to a tax interpretation.
This is revenue determined pursuant to Article 17, section 1, item 6, letter a. and Article 17, section 1, item 9 of the Personal Income Tax Act or pursuant to any other provision of that Act.
– It is worth pointing out that the Director of the KIS in the interpretation issued emphasised that the provisions of the Personal Income Tax Act in force from 22 May 2023 indicate as the moment when income arises only any income received from a family foundation (either during its operation or as a result of its dissolution). None of the provisions of the Personal Income Tax Act indicate that when the founder contributes assets to the family foundation to cover the founding fund, revenue arises on the part of the founder, notes Marek Kończak, tax adviser, senior manager at Thedy & Partners.
Individual interpretation of 15 June 2023, No. 0113-KDIPT2-3.4011.284.2023.3.JŚ