At the end of last year, the media reported that the popularity of Polish family foundations had almost tripled the expectations of the Ministry of Economic Development and Technology. In fact, the authors of the legislation expected around 300 applications per year, while by December 2023 more than 800 applications had been submitted, of which less than 400 entities had been successfully registered.
What are the reasons for the success of family foundations among Polish entrepreneurs? What are their advantages and disadvantages? Who benefits from them and how, and are there equally effective alternatives for protecting the wealth generated?
And above all, what are the risks, particularly in the tax area? In fact, a foundation is not only a useful tool for the effective management of family capital, but also an attractive tax solution. Foundations are exempt from corporate income tax, with a deferred obligation to pay a flat rate of this tax, which only becomes due when the foundation’s funds are paid out to the beneficiary or founder.
However, in order to take advantage of these attractive solutions, before setting up a foundation it is necessary to carry out a comprehensive review of the assets held, to define precisely the common goals and perspectives, and to assess the possible tax consequences of contributing individual assets to the foundation.
It should be borne in mind that the favourable tax conditions are limited to the so-called permitted activities of a family foundation.
On 21 March, we will therefore examine the practical aspects of the process of setting up and organising a family foundation, taking a closer look at specific problems and the current tax case law in this area. We invite you to join us for this discussion.
PROGRAM
Corporate matters
- What family foundations are and how to set them up
- The beneficiaries of a foundation
- If not a family foundation, then what (are there other options?)
- Optimally structuring family foundations to best achieve their objectives
- The pros and cons of family foundations from a business point of view
Tax issues
- Taxation for family foundations and distributions from family foundations (CIT and PIT)
- VAT issues related to non-monetary contributions to family foundations
- Tax risks associated with the operation of family foundations under the General Anti-Avoidance Rule (GAAR)
- Ruling practice of the tax authorities
Followed by a Q&A Session
Speakers
Who should attend?
Anyone considering setting up a family foundation, or considering protecting personal assets in the context of running a business with personal liability, as well as those who are or may be involved in providing legal or accounting services to a family foundation.
**
Participation in the event is free of charge, following registration and acceptance of applications. The organizer reserves the right to refuse applications or to cancel the event.
A link to the online broadcast will be sent to participants the day before the event.