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Family foundation in the Polish legal system


​Monika Spotowska

1 czerwca 2023

The long-awaited Family Foundation Act has entered into force in May 2023. It had been amended even before it was enacted.

Key changes 

The PIT rate in respect of the foundation beneficiaries who belong to tax groups I and II in the meaning of the Inheritance and Donation Act is 10%. Therefore, whenever benefits are paid to such individuals, the revenue authorities will charge 15% of CIT from the foundation and 10% of PIT from the beneficiary. The PIT rate was originally supposed to be 15%. As a reminder, beneficiaries from group 0 do not pay PIT at all.

A shareholder in a company that pays profit distribution tax (CIT estoński) may now also be a founder or a beneficiary of a family foundation. The original act did not allow that. 

In addition to the above novelties, the amended act: 

  • revokes the CIT exemption in respect of the foundation's income from lease, rental or a similar agreement concerning an enterprise, an organised part of enterprise or assets used to run a business by a beneficiary, the founder or an associated enterprise; 
  • retroactively taxes a family foundation pending organisation if it is not entered in the register of family foundations within 6 months of its formation; 
  • excludes debt financing costs of loans granted by a family foundation from the limit referred to in Article 15c of the CIT Act.

If you are interested in the profitability analysis for implementing this form of business succession or have questions about Polish family foundations – please contact us.


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Monika Spotowska

Attorney at law (Poland), Tax adviser (Poland)

Associate Partner

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