Changes for investors in equity funds
As of January 1, 2024, the rules for taxing income from the redemption, repurchase, redemption or otherwise annihilation of equity fund units will change. Currently, tax on the disposal of equity fund participation titles is settled in a lump sum under Article 30a of the PIT Law.
However, in accordance with the amended regulations, as of the new year, income from the redemption, repurchase and redemption of equity fund units will be taxed according to the rules set forth in Article 30b(1) of the PIT Law.
At the same time, the legislator indicated that income from the above-mentioned operations on fund participation units is the difference between the sum of income received from the redemption, repurchase, redemption or otherwise annihilation of capital fund participation titles and the expenses incurred for the acquisition of capital fund participation titles.
The income calculated in this way will be subject to taxation at the rate of 19% PIT.
On the other hand, from January 1, 2024, it will be the taxpayer – in this case, the recipient of the receivable from the sale of equity fund units – who will be required to tax the income received on his own in his annual return.
At the same time, the paying entity (e.g., a financial institution, an insurance company) will have information obligations. These entities will be obliged to send the taxpayer and the tax office with the help of which the head of the tax office competent according to the taxpayer’s place of residence performs his tasks, and in the case of a non-resident to the tax office with the help of which the head of the tax office competent in matters of taxation of foreign persons performs his tasks, registered information on the amount of income from the sale of units in capital funds.
This information is likely to be submitted by institutions on a PIT 8C form – however, at the moment, this form is not updated due to the amendment of the regulations, which will take effect from January 1, 2024.
Since in the above information the payers will be required to determine income, this means that they will have to determine deductible expenses in the correct amount.
Therefore, for example, in the case of insurance institutions that offer individual life insurance with a capital fund, it will be important whether the person entitled to receive the redemption amount will also be the financier of the premiums, which the taxpayer could recognize as deductible expenses.
At the same time, it is particularly noteworthy that the inclusion of income from the redemption, repurchase, redemption or otherwise annihilation of participation titles in equity funds in the same catalog of sources of income (under Article 30b(1) of the PIT Law) as income from:
- from paid disposal of securities or derivative financial instruments and from the exercise of rights arising therefrom,
- from paid disposal of shares (stocks),
- from paid disposal of shares in a cooperative,
- from the acquisition of shares (stocks) or contributions in a cooperative in exchange for a contribution in kind, creates the possibility of offsetting losses against income earned from these sources of income.