In brief

• The Senate proposed a clarifying amendment to the amendment on taxation of family foundations.
• The Sejm adopted the amendment on Thursday, after which the act was sent to the president.
• The act introduces a two-year grace period and raises the tax on payouts from 15% to 19%.
• Business supported the changes and is urging the president to sign.

Purpose of the amendment

The government justifies the changes by the need to tighten rules that, in its view, are used for very aggressive and unfair tax optimization (Senat za poprawką do ustawy o fundacji rodzinnej – Prawo.pl). Family foundations were intended primarily to secure the assets of entrepreneurs' families, but some entities used them for short-term tax avoidance (Biznes apeluje do prezydenta o podpis pod fundacjami rodzinnymi. „To nie kombinatorstwo” – Puls Biznesu).

What the act provides

The changes introduce a two-year grace period and raise the tax on payouts from family foundation assets from 15% to 19%. Commentators assess that foundations will lose some tax benefits but gain clearer rules for investing (Sejm uszczelnił system fundacji rodzinnych. Teraz czas na ruch prezydenta – Rzeczpospolita).

Senate, Sejm and the president

The Senate proposed a clarifying amendment to the act. The Sejm adopted it on Thursday, and only after that was the amendment passed on to the president.

Business position

Entrepreneurs supported the amendment. According to their representatives, the changes are meant to counter abuses rather than facilitate maneuvering. They urge the president to sign the act.

What next

The final fate of the act depends on the president's decision. If he signs it, the new rules will take effect in accordance with the transitional provisions contained in the act.

Read also

• Senat przyjął ustawę bez poprawek. Ruch należy do prezydenta