Taxation of family foundations after the changes – an up-to-date guide for entrepreneurs

In this article, we explain the current taxation status of family foundations following the announced changes to the Corporate Income Tax (CIT) and the presidential veto. You'll learn what solutions the draft amendment was intended to introduce, why the government planned to tighten regulations, what legislative risks apply to family foundations, and what this means for entrepreneurs planning their succession. The article also includes an expert assessment of the changes' impact on tax law stability and practical tips for further planning.

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Family foundations remain one of the most important tools for asset succession in Polish family businesses. At the same time, due to intensive legislative work, their tax environment has begun to change rapidly. Recent months have seen the draft amendment to the Corporate Income Tax Act covering family foundations, followed by a presidential veto on these regulations.

It is therefore worth sorting out the legal situation, understanding the direction of changes and assessing their consequences for entrepreneurs planning succession and asset protection.

CONTENTS:

The draft of changes to CIT – what were the assumptions?

The draft bill (No. UD293) was included in the Council of Ministers' legislative agenda and sparked widespread discussion among both advisors and entrepreneurs. The goal of the changes, according to the Ministry of Finance, was to curb abuses and restore family foundations to their original role of protecting family assets, not tax optimization tools.

The most important proposals included:

• 36-month asset maintenance obligation (lock-up)

The sale of assets contributed to the foundation was to be tax-exempt only if they remained in the foundation for at least three years. This regulation was intended to prevent the rapid transfer of assets solely for the purpose of selling them profitably.

• No exemption for short-term rentals and hotel services

A family foundation would not be able to benefit from tax preferences when running a "hidden hotel business.".

• Taxation of revenues of tax-transparent companies

The aim was to tighten the structures that allowed the foundation to circumvent the ban on conducting business activity.

• Placing the foundation under the CFC (Controlled Foreign Corporation) regime

The idea was to prevent the transfer of wealth and income to lower-tax jurisdictions.

• Introduction of exit tax

If the foundation's assets were transferred abroad, they would be subject to taxation, just like other entities.

• Expanding the catalogue of so-called hidden profits

The aim was to limit the payment of benefits to beneficiaries in forms that should not benefit from preferential taxation.

Why did the government propose these changes?

The Ministry of Finance indicated that some family foundations had begun to operate inconsistently with legislative intent. The abuses cited included:

• transferring property only to sell it tax-free,
• using tax-transparent companies to circumvent operating restrictions,
• using optimization structures that had nothing to do with family succession.

From the perspective of the state budget, the amendment was intended to limit the erosion of the tax base and equalize taxation rules between foundations and other business entities.

Presidential veto – why did the bill not come into force?

On November 27, 2025, President Karol Nawrocki vetoed the bill amending the Corporate Income Tax Act., arguing that:

• the state should not withdraw from the principles it has previously announced,
• when introducing a family foundation, legal stability was declared for a minimum of three years,
• The proposed changes also affected existing foundations, which undermined citizens' trust.

In practice, this means that none of the announced regulations are in force, and family foundations operate under the same principles as before

What does the presidential veto mean for entrepreneurs?

➤ First: stabilization… but only temporarily

The veto doesn't end the matter. Announcements from the Ministry of Finance suggest that tightening regulations may return in a modified form.

➤ Secondly: family foundations are still tax-attractive.

The current tax system remains beneficial for companies with long-term succession planning.

➤ Thirdly: the importance of consulting is growing

The changing legal environment means that entrepreneurs should regularly analyze:

• asset structure,
• the method of managing the foundation,
• relations with beneficiaries,
• potential legislative risks.

Critical assessment – what next for the predictability of law?

Family foundations have only been operating in Poland since 2023, and they have already become the subject of intense legislative intervention. This raises several issues:

• lack of stability weakens the attractiveness of the institution,
• entrepreneurs lose the ability to plan for long-term succession,
• advisors must constantly update strategies and structures,
• there is uncertainty as to whether further changes will be introduced suddenly.

And trust is one of the key factors when making financial decisions with a multi-generational horizon.

Conclusions and recommendations

Despite the bill's veto, entrepreneurs should look to the future with cautious realism. It's possible that:

• some solutions will return as part of the new project,
• more lenient forms of regulation will be introduced,
• there will be additional requirements regarding the activities and transparency of the foundation.

The family foundation remains a very valuable asset a tool of succession, but its effective use today requires greater regulatory awareness and specialist support.

Summary

The taxation of family foundations is an area that underwent intense legislative debate in 2025. Proposed changes were intended to streamline the rules for using this institution, but were ultimately vetoed. For businesses, this means maintaining the current, favorable rules—but also the need to be vigilant about future changes.

A family foundation still serves its role as a succession tool perfectly, but it requires a conscious approach, professional advice and readiness for the changing regulatory environment.