On 12 August 2024, the Ministry of Finance of Poland website, specifically in the list of legislative and programme work of the Council of Ministers, published an announcement about a draft law amending the Personal Income Tax Act, as well as the Corporate Income Tax Act and some other laws.
What do the changes involve?
The reference to the draft has the signature UD116. From the published note, we can learn that the Ministry of Finance is planning changes to the tax law. The Ministry indicates that the proposed changes are aimed, among other things, at tightening the tax system.
Family foundations – what will the tax changes include?
We can read in the announcement that the changes will cover, among others, family foundations. The changes are to include a modification of the taxation rules for family foundations, in particular to tighten up tax regulations (whatever that means in concrete terms).
Solidarity contribution on payments from family foundations
The description of the project also indicates the intention to include family foundation benefits in the solidarity contribution, which may result in individuals receiving more than PLN 1 000 000 in family foundation benefits per year being obliged to pay an additional levy in the form of a solidarity contribution. The solidarity contribution rate is currently at 4%. At the moment, the draft amendment to the legislation itself has not been published, so nothing more is known beyond the general information that can be read in the description of the planned work on the Ministry’s website.
Changes to the taxation of the family foundation – when do they come into force?
It is worth pointing out the planned timing of the bill. According to the information posted on the Ministry of Finance website, the bill is expected to be adopted between the third and fourth quarters of 2024, which probably means aiming for effective implementation of the changes as early as 2025.
This is sad news given the announcements made by the ruling coalition even before the elections, according to which the minimum vacatio legis for tax changes was to be six months.
Below you will find a link to the announcement from the website of the Ministry of Finance.
Draft law amending the personal income tax act,
https://www.gov.pl/
the Corporate Income Tax Act and certain other acts
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