On 6 September 2026, tax experts outlined the fiscal consequences of dissolving a family foundation (fundacja rodzinna) under Polish law, highlighting that liquidation is not tax-neutral. Upon dissolution, the foundation’s assets are distributed to beneficiaries, triggering a 15% corporate income tax (CIT) on the market value of transferred assets at the foundation level. For beneficiaries, the received assets constitute taxable income subject to personal income tax (PIT) at progressive rates (12%/32%) or a flat 19% if qualifying as capital gains, depending on the nature of assets and the beneficiary’s tax status. Critically, the tax base for beneficiaries is reduced by the proportion of assets originally contributed by them (the “contributed property” exemption). The article stresses the necessity of a pre-liquidation tax simulation to quantify the combined CIT and PIT burden, explore alternative structures (e.g., transformation into a company), and assess the impact of the 15% minimum tax introduced under OECD Pillar Two. Founders should also consider the timing of dissolution relative to the foundation’s ten-year minimum activity period to avoid clawback of prior tax benefits.
Key Takeaways
- Dual Taxation Layer: Foundation pays 15% CIT on distributed assets; beneficiaries pay PIT on receipt, with credit for contributed property.
- Contributed Property Exemption: Beneficiaries exclude from taxable income the value of assets they originally donated to the foundation.
- Mandatory Pre-Liquidation Simulation: Comprehensive tax modeling is essential to compare dissolution costs against continuation or restructuring options.
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