The Polish Deal: Entrepreneurs who go public will get special relief
Under the Polish Order and the extensive tax changes planned in connection with it, entrepreneurs are to receive certain reliefs. One of them is to concern IPOs and investments in IPOs. Support in the form of tax reliefs is also to be provided to firms investing via Venture Capital funds, the Finance Ministry's announcement reads.
– Relief for IPO, i.e. for the first public offering of shares. According to the Ministry of Finance, entrepreneurs will be able to deduct 150% of expenses directly related to going public (for drafting the prospectus, notary, court, stamp and exchange fees, as well as preparing and publishing announcements required by law). Moreover, it will be possible to deduct additional 50% of expenses on advisory, legal and financial services, directly related to the issue (max. 50 thousand PLN without VAT) – explains Michał Thedy, tax advisor, partner in Thedy & Partners.
Additionally, an Individual Investor Relief is to be introduced. It is to consist in the abolition of the obligation to pay tax on the profit from the sale of shares bought as part of an IPO, provided that they are retained for three years.
Once the drafts of the announced regulations are published, we will analyse them again and point out the effects in practice.