For now, the number of family foundations is not impressive
By 15 September 2023, 112 family foundations had been registered, according to the response of the Piotrków Trybunalski District Court to a question posed by Thedy & Partners.
Considering that, according to the Institute of Family Business, there are nearly 830,000 family businesses in Poland and 57 per cent are planning a succession within the next five years, the number of established family foundations is so far not impressive.
– Of course, it must be remembered that the option to establish a family foundation has only been in operation for less than four months (as of 22 May 2023). It is therefore difficult to expect that entrepreneurs will immediately rush to register this type of foundation. However, it is worth bearing in mind the benefits that the registration of a foundation may bring to family businesses, comments Łukasz Kupryjańczyk, tax adviser, partner at Thedy & Partners.
It is worth mentioning here the tax benefits for family foundations. According to the regulations, the taxation of family foundations and beneficiaries as a rule takes into account the family relationship with the founder. The establishment of a family foundation and the transfer of assets to it is not taxed. Neither PCC, PIT or CIT will occur here. A family foundation pays a CIT of 15 per cent levied only at the time the funds are transferred to the beneficiaries.
Beneficiaries who are individuals, as PIT taxpayers, are exempt from tax if they belong to the immediate family. This refers to the founder and his or her spouse, ascendants, descendants, siblings, stepchildren, stepfather or stepmother. Individuals in tax group I or II as defined in the inheritance and gift tax regulations will pay 10% PIT. Others will pay 15% PIT.
If you do not know how to set up a family foundation or need support in this area – please do not hesitate to contact us.