Safe tax optimization

Investment funds offer investors the opportunity to collectively invest their money, in accordance with regulations, into various securities and other property rights. In Poland, there are three types of investment funds: open-ended (FIO), specialized open-ended (SFIO) and closed-ended (FIZ), which differ in their tax statuses, among other things.

An investment fund – in addition to its main purpose of investing in selected financial instruments – can play an important role in the succession of an asset or business. Read the article and find out more.

Among the main advantages of Closed-End Investment Funds (FIZ) is the diversification of the economic risks incurred by entrusting funds to an entity that specializes in making investments, i.e. an investment fund company.

An investment fund – in addition to its standard function of investing the money collected – can act as a “holding company” for carrying out specific investments.

Taking advantage of the Polish Investment Zone’s preferences is an attractive option for investors seeking tax benefits, but such benefits are not without risk. Recognition of eligible costs, inability to take advantage of simplified transfer pricing documentation, and potential revocation of support decisions are just some of the issues that can expose entrepreneurs to unexpected complications. In our latest blog post, we examine these risks and the Polish Investment Zone rules to help investors better understand what these preferences may mean for their business operations.

The Polish Investment Zone was introduced by the Act of May 10, 2018 on supporting new investments. This solution, unlike special economic zones, makes it possible to obtain state aid throughout the country. The state aid in question relates to exemption from payment of both PIT and CIT income tax on income generated in connection with the new investment covered by the decision on support. Importantly, the exemption cannot be used by companies forming a tax capital group established or for which the period of operation has been extended since June 30, 2018.

The introduction of new regulations always raises many questions and uncertainties. Above all, we want to know what these changes mean for us and how they might affect our operations. As we begin 2022, Poland has introduced significant changes for investors and companies interested in holding structures. The new concept of the Polish Holding Company (PSH) is a proposal for favorable tax conditions aimed at attracting and retaining capital in our country. Therefore, in the post we will take a closer look at this solution, find out what a Polish Holding Company is, what conditions it must meet and what we need to know about its subsidiaries.

These days, more and more entrepreneurs are thinking about optimizing their tax structure. Properly organized holding structures can bring significant benefits, including significant tax benefits. The Income Tax Law provides a number of preferences for such entities, including tax exemption of income from the paid disposal of shares (stocks) and tax exemption of dividend income.