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Elimination of double taxation for Alternative Investment Companies

PFR Ventures
Elimination of double taxation for Alternative Investment Companies

Thanks to activities undertaken by PFR Ventures, double taxation for Venture Capital funds has been successfully eliminated

The President signed a law which introduces simplifications for entrepreneurs, including some beneficial changes for venture capital funds. They will enter into force as of 1 January 2019.

As far as changes for VC funds are concerned, double taxation of income earned by venture capital funds for investors has been successfully eliminated. As of the new year, ASI do not pay income tax on earnings from the sale of shares or stock. The tax will be paid only once by investors (recognised in PIT or CIT return).

Detailed information on amendments to the Act: http://dziennikustaw.gov.pl/du/2018/2244/1

The change which eliminates double taxation for ASI:

Pursuant to Art. 8(7)(b) of the Act, certain changes in Art 17(1) of the Act of 15 February 1992 on Corporate Income tax are introduced so that section 58 is followed by 58a according to which income (revenue) of alternative investment companies earned in the fiscal year from the sale of shares or stock shall be tax-free as long as the alternative investment company which disposes the shares or stock directly held before the disposal date at least 10% of the shares or stock in the company whose shares or stock are being sold for a continuous period of two years;"

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