Recent developments in Polish tax exemption for foreign investment funds

 

Piotr Paśko and Tomasz Janik of MDDP say that while application of the tax exemption has historically been challenging, foreign investment vehicles stand to benefit as a more favourable environment appears to be emerging.

 

The Polish Corporate Income Tax Act provides for an exemption of income (revenues) of collective investment institutions headquartered in EU/European Economic Area member states. The exemption can particularly cover upstream distributions, including interest and dividends from Polish companies, as well as capital gains earned in Poland. This article explores the evolving landscape of the tax provision and its implications for foreign investment funds, with a particular focus on externally managed funds.

Investment funds can be managed externally or internally; i.e., without the assistance of an external fund manager. The choice between external and internal management is typically dictated by the individual needs and preferences of investors. Factors such as cost structure, desired level of control, investment strategy, and regulatory requirements all play a role in this decision.

 

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#MORE in the article by Piotr Paśko and Tomasz Janik on the International Tax Review website >>
https://www.internationaltaxreview.com/article/2djon7d0ngcfxtac83dog/sponsored/recent-developments-in-polish-tax-exemption-for-foreign-investment-funds.