Tax consultancy for family foundations – Support tailored to your vision

Family foundations are an innovative solution to effectively manage family assets and protect them for generations. However, founders of family foundations face a number of challenges – from complex tax rules to proprietary structure planning to regulatory compliance. EFEKTA offers specialist tax consultancy that addresses the unique needs of founders and supports them in achieving their family and proprietary goals.

Why do family foundations have special tax needs?

1. Complexity of tax regulations
   The amendment of the law has introduced special rules for the taxation of family foundations, which differ from the standard rules for other legal entities. Founders need to understand the tax implications of their decisions.
2. Protecting assets and minimising burdens
   A key objective of a family foundation is to safeguard assets for the future, which requires tax optimisation in their transfer, management and inheritance.
3. Income of foundations and taxation of beneficiaries
   Income generated by a foundation (e.g. from investments, rent or dividends) and its distributions to beneficiaries is subject to specific tax regulations.
4. Succession planning
   Family foundations serve as a tool for succession planning. It is important that the process of transferring assets is not only compliant, but also tax-advantageous.

What needs do family foundation founders have?

Founders are looking for solutions that:

• Protect assets from excessive tax burdens.
• Guarantee tax transparency and minimise the risk of disputes with the tax authorities.
• Enable effective management of foundation income and disbursements to beneficiaries.
• Assist in succession planning so that family assets are protected for generations.
• Provide regulatory compliance, eliminating the risk of penalties or tax sanctions.

Our tax consultancy services for family foundations

At EFEKTA, we offer comprehensive support tailored to the unique needs of family foundations. Our services include:

1. Tax planning for founders and beneficiaries
   We assist in the tax analysis of donations, wealth transfers and distributions from foundations to minimise the tax burden.
2. Optimising foundation income
   We advise on the effective management of income from investments, real estate or business activity carried out by the foundation.
3. Assistance with asset transfer taxation
   We assist in planning and settling for asset transfers to foundations and beneficiaries, taking into account tax reliefs and exemptions.
4. Representation before the tax authorities
   In the event of a tax audit, we represent the foundation and ensure that its interests are protected.
5. International tax consultancy
   We support foundations that manage assets outside Poland with regard to international tax regulations.
6. Assistance with tax documentation
   We prepare tax returns, reports and documentation, ensuring compliance with current legislation.

Benefits from cooperation with EFEKTA

1. Expert knowledge of family foundations
   Our experience in handling the family foundations allows us to deliver solutions perfectly tailored to your needs.
2. Individual approach
   Each family foundation has unique goals and structure. We tailor our activities to your vision of asset management.
3. Regulatory compliance
   We ensure that all the foundation’s activities comply with current regulations, minimising tax risks.
4. Tax optimisation
   We help reduce the tax burden by maximising the benefits from running a family foundation.
5. Complete support
   We are with you every step of the way – from setting up the foundation, through its operation to tax returns.

EFEKTA – Your support in managing a family foundation

Family foundations are the future of responsible asset management. With the support of EFEKTA, you can be sure that your foundation is operating in compliance with regulations and that your assets are effectively protected and managed.

Contact us today to find out more about our tax consultancy services for family foundations. Make an appointment for a free consultation and find out how we can help you achieve your family goals.

EFEKTA – safety and growth for your family and assets.

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Why does a family foundation require a different tax approach than a company?

A family foundation operates based on specific regulations that differ significantly from standard corporate taxation. The main difference is the subjective Corporate Income Tax (CIT) exemption regarding permitted activities (e.g., rental income, dividends). This means that the tax is only levied at the moment of paying benefits to beneficiaries or transferring assets upon the foundation’s dissolution.

How does a family foundation protect assets against taxes?

The foundation allows for the accumulation of capital without the need to pay income tax on investment profits or real estate rentals (within the limits of permitted business activity). As a result, funds that would normally go to the tax office as an annual tax can be further reinvested, significantly increasing the value of the family wealth over the years.

What are the taxation rules for payments to beneficiaries?

The taxation of benefits depends on the relationship between the beneficiary and the founder. For the immediate family (the so-called zero tax group), payments are exempt from Personal Income Tax (PIT). However, the foundation itself is obligated to pay a 15% CIT on the value of the transferred benefit. Our advisory helps accurately plan these cash flows to avoid any settlement errors.

Can a family foundation conduct business activity?

Yes, but the act strictly defines its scope. A foundation may, among other things, dispose of property, rent real estate, join commercial companies, or grant loans to companies in which it holds shares. Operating outside this permitted catalog results in a punitive CIT rate of 25%, which is why the support of EFEKTA advisors is crucial for maintaining your tax security.

What are the tax implications when transferring assets into the foundation?

The transfer of assets to the foundation by the founder is, as a rule, tax-neutral. This is a pivotal moment in succession planning, during which we help properly document the transfer of assets (such as company shares, real estate, or cash), taking into account all available tax exemptions.

How does EFEKTA support succession planning?

We help design a structure that not only protects wealth from fragmentation but is also fully optimized for inheritance and gift taxes. We ensure that the process of transferring control over assets to subsequent generations is smooth and generates the lowest possible fiscal burdens.

Does the firm assist with the settlements of foundations holding assets abroad?

Yes. We offer expert advisory in international tax law. If your foundation manages real estate or shares in foreign companies, we help avoid double taxation and ensure full compliance with Controlled Foreign Company (CFC) regulations.

What support can I count on in the daily functioning of the foundation?

We provide comprehensive services: from preparing tax returns and reports, through ongoing advisory on the foundation’s new investments, to representing you before tax authorities in the event of an audit. Our goal is to provide the founder with complete peace of mind and the certainty that their vision is being executed strictly in accordance with the law.