After a series of refusals to issue advance rulings by the Head of the National Revenue Administration (concerning contributions in kind and quick sales), the impression may have been created that the tax authorities perceive family foundations solely as a risky optimisation vehicle. However, an analysis of the practice of the Director of the National Tax Information Service shows that in typical, economically justified models, the foundation benefits from the CIT exemption and can safely perform its succession function.
Positive individual interpretations
Long-term rental of real estate
Interpretation of 17 December 2024, ref. no. 0114-KDIP2-1.4010.667.2024.1.KW – The Director of the National Tax Information Service confirmed that the income of a family foundation from the long-term lease of a residential house will be exempt from CIT (Article 6(1)(25) of the CIT Act), as it falls within the permitted scope of activities (Article 5 of the Family Foundation Act) and does not meet the negative conditions of Article 6(8) of the CIT Act.
The key factor was that the lease was residential in nature and not commercial for the related beneficiary.
DKIS said more, a family foundation that leases a flat on a long-term basis to another taxpayer (e.g. a limited liability company) will not suffer any consequences if the tenant then sublets it “on a daily basis”. The foundation’s income from the lease will be tax-free.
Short-term rental of real estate
0111-KDIB1-2.4010.585.2024.2.EJ (16 December 2024) – The Director of the National Tax Information Service confirms, in principle, the CIT exemption for FR income from rental/lease, subject to the exclusions in Article 6(7)-(8) of the CIT Act. The interpretation emphasises that the regulations do not narrow the concept of “rental” (the dispute over short-term rental arose later from practice), so negative premises (beneficiary/founder/related parties and use in business) are key.
0111-KDIB1-2.4010.53.2024.1.ANK (14 March 2024) – confirmation of CIT exemption for leasing to unrelated entities, with the proviso that leasing to related entities used in business activities is excluded from the exemption (Article 6(8) of the CIT Act).
Case law (courts) – Provincial Administrative Court in Gdańsk, 19 June 2024, I SA/Gd 219/24 and Provincial Administrative Court in Bydgoszcz, 9 April 2025, I SA/Bd 107/25: short-term leasing falls within the scope of “leasing” under Article 5(1)(2) of the CIT Act and may benefit from CIT exemption, provided that
the conditions of Article 6(8) of the CIT Act (beneficiary/founder/related parties – economic purpose) apply.
Note:
The Director of the National Revenue Information Service is also restrictive towards short-term rentals (Interpretation of 9 May 2025, 0111-KDIB1-2.4010.148.2025.2.MK, in which he stated: “(…) it is therefore not possible to agree with the assertion that short-term rental of residences falls within the scope of activities permitted under Article 5(1)(2) of the CIT Act and that income from short-term rentals is exempt from corporate income tax” but courts have begun to agree with taxpayers that “rental is rental”. The exemptions from Article 6(8) of the CIT Act are key
Ø This is an important distinction: the problem is the beneficiary’s business, not the rental relationship itself.
Loans to subsidiaries
Interpretation of the Director of the National Tax Information Service 0111-KDIB1-2.4010.282.2024.2.AK (09.08.2024) – granting loans by a family foundation is a permitted activity (Article 5(1)(5) of the Family Foundations Act). A loan granted by a family foundation to entities other than those specified in Article 5(1)(5) of the Family Foundation Act as beneficiaries – for any period of time shall not constitute hidden profits within the meaning of Article 24q(1a)(6) of the CIT Act and, therefore, there shall be no tax liability on hidden profits in the form of taxation of the loan amount granted to such entities by the family foundation at a tax rate of 15%.
This confirms that financial activities within the permitted scope are acceptable.
Position of the Ministry of Finance and the National Revenue Administration in statutory justifications
The explanatory memorandum to the Family Foundation Act emphasised that the CIT exemption is intended to enable tax-neutral accumulation of assets and the performance of succession functions. However, the Ministry of Finance has emphasised from the outset that the restrictions (Article 6(6)-(8) of the CIT Act) are intended to protect against the “transfer” of assets solely for the purpose of avoiding tax.
This approach is reflected in practice: ordinary succession models (leases, loans, capital investments) are accepted, and only purely tax schemes (contributions and quick disposals) are refused a protective opinion by the Head of the National Revenue Administration.
Proposed changes – new limits on CIT exemption
Against the background of existing interpretations, it is particularly important that the legislator itself recognises the need to clarify the framework for the activities of family foundations. The latest draft amendments to the Family Foundation Act provide, among other things, for:
exclusion of short-term rentals (e.g. condo-hotels) from the list of permitted activities, which confirms the direction presented in interpretation 0111-KDIB1-2.4010.148.2025.2.MK,
clarification that the rental of assets to beneficiaries, founders or related entities always excludes exemption if business activity is conducted on the premises,
possible restrictions on granting loans – the legislator is considering limiting them to subsidiaries of foundations in order to avoid “cascade” financing,
introduction of the principle of proportional limitation of exemption – if a foundation conducts both permitted and prohibited activities in parallel, CIT would be calculated only on the “prohibited” part, and not on the total income,
additional anti-abuse regulations to limit the creation of optimisation structures that are formally compliant with Article 5 of the Act but in fact serve only tax purposes.
Such changes show that the use of CIT exemptions in family foundations will require even greater attention and ongoing monitoring of the practices of the National Revenue Administration in the near future.
Positive signals from the market
Many law firms (including ID Advisory, LTCA, TPA) indicate in their comments that family foundations remain one of the most effective succession tools. Examples of favourable interpretations build confidence that, with the right structure design:
· the foundation does not pay CIT on current income,
· payments to beneficiaries from group “0” are tax neutral,
· risks can be controlled by avoiding “artificial” contributions.
Summary – balance between theory and practice
A family foundation is not a vehicle for tax optimisation in isolation from business, but it is still a genuinely beneficial tool.
· On the positive side – numerous interpretations confirming CIT exemption in typical situations (residential leases, loans, investments).
· On the downside – refusals to issue protective opinions by the Head of the National Revenue Administration concerning “contribution + sale” schemes, which the tax authorities treat as circumvention of the law.
For entrepreneurs, this means one thing: the foundation works, but it requires common sense and economic logic. When designing structures, it is worth basing them on real succession needs, and not solely on tax calculations.
