On 2 October 2026, iKIDP reported on the latest protective opinions issued by the Head of the National Revenue Administration (KAS) concerning the sale of assets by family foundations (fundacja rodzinna). The opinions clarify that the disposal of shares or other assets by a family foundation, followed by reinvestment of proceeds, does not automatically trigger corporate income tax (CIT) or personal income tax (PIT) liabilities, provided the transaction is driven by a genuine investment purpose and lacks artificiality. The tax authority examines the economic substance of the reinvestment, the timeline between sale and reinvestment, and whether the foundation’s statutes permit such activity. The guidance is particularly relevant for high-net-worth families using the family foundation vehicle introduced in 2023 for succession planning and asset protection.
Key Takeaways
- Investment Purpose Test: The KAS emphasizes that the sale must be part of a coherent investment strategy, such as portfolio rebalancing or diversification. Arbitrary asset stripping followed by distribution to beneficiaries will be treated as a deemed dividend subject to 15% CIT at foundation level and 19% PIT at beneficiary level.
- Reinvestment Timeline: While no statutory deadline exists, the opinions suggest a reasonable period (typically 12–24 months) for redeploying proceeds. Delays without justification may attract anti-avoidance scrutiny under Article 101a of the Tax Ordinance (general anti-avoidance rule).
- Documentation Requirements: Foundations should maintain detailed records of investment committee minutes, market analyses, and broker confirmations to substantiate the commercial rationale. The article advises obtaining a pre-transaction ruling (indywidualna interpretacja) for complex structures.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement