Mateusz Kowalski

Hello, I am writing to kindly request clarification on the taxation of income from a Polish family foundation, in the context where the beneficiary of this foundation is a person who is a UK tax resident. Background of the Inquiry: 1. Polish Family Foundation: o A Polish family foundation is a legal entity established to gather and manage assets according to the founder's will and to provide benefits to its beneficiaries. o This foundation aims to protect family assets institutionally, consolidate family assets in a single entity, and secure the interests of beneficiaries for future generations. o The family foundation can engage in limited economic activities, such as joining commercial companies, buying and selling securities, providing loans, and renting property. o The family foundation is a separate legal entity, having its own bank account, owning property, and being able to enter into civil law contracts. 2. Taxation of the Family Foundation in Poland: o The Polish family foundation is subject to corporate income tax (CIT) in Poland. o The foundation's income is taxed under Polish tax law. o The foundation can provide benefits to its beneficiaries, such as monetary payments. These benefits are taxed in a way that the family foundation pays 15% CIT on the value of the benefit (without withholding tax on the benefit), and the benefit is exempt from personal income tax (PIT) in Poland. Request for Clarification: Does the role of a beneficiary of a Polish family foundation by a UK tax resident result in the taxation of the foundation's income on the beneficiary's side in the UK as if it were a tax-transparent entity? From the information available, e.g., on https://www.gov.uk/trusts-taxes, it appears that a Polish family foundation may be treated as a trust in the UK (however it is not tax transparent company according to Polish law) Additionally, how the payment of a monetary benefit from the family foundation to a beneficiary may be considered and taxed in the UK? Benefit is according to Polish law understood as assets, including cash, property or rights, transferred to the beneficiary or given to the beneficiary for use by a family foundation or a family foundation in organisation, in accordance with the statutes and the list of beneficiaries. Thank you in advance for your response and any guidance on the tax obligations of a UK tax resident beneficiary in relation to their role in a Polish family foundation.