Tax in family foundations: how much will you pay after the 2026 changes?

The Ministry of Finance's draft from August 5, 2026, assumes an increase in the tax rate to 19 percent, which is intended to curb abuses related to tax avoidance. The finance ministry has deemed the existing preferences a tool used for aggressive optimization, rather than solely for the protection of succession assets. This change represents a reversal in state policy toward family foundations, which, in the view of officials, have become tax vehicles requiring immediate correction.

Why is the finance ministry putting foundations under the microscope?

The official shift in fiscal policy toward family foundations stems from the results of a comprehensive review of regulations conducted by the finance ministry in June 2026. Officials analyzed loopholes in the system, seeking answers regarding the scale of tax evasion reported publicly on June 14, 2026. The data collected during this period became the basis for preparing the draft law.

In June 2026, the discussion about foundations ceased to concern only business succession. The portal pb.pl published the conclusions of the government review on June 15, 2026, pointing to the use of foundations as optimization tools. These arguments gained recognition in the Ministry of Finance, which stopped treating foundations as purely succession instruments. The ministry concluded that the existing preferences enabled aggressive tax planning.

The draft from August 5, 2026, is the implementation of these observations. This is not a proposal for a correction, but an attempt to change the path that many entrepreneurs treated as a safe haven. The Ministry of Finance is clear: the current regulations allowed for too much, and rates must be higher. Entrepreneurs who counted on the stability of regulations have collided with fiscal pragmatism. The government concluded that after a year of the rules being in effect, the budgetary costs of maintaining them in their current form became unacceptable. The foundation of the discussion is no longer supporting capital accumulation, but sealing the system. Ultimately, founders will pay for this state of affairs with a higher tax rate.

Key assumptions of the draft from August 5, 2026

The official draft law of August 5, 2026, makes the matter clear: existing tax preferences will be limited. Beneficiaries must reckon with higher maintenance costs for structures. The ministry is no longer looking for compromises. It aims to seal a system that, in the eyes of officials, has become a tool for optimization.

The legislative proposal, the details of which were analyzed by Deloitte experts, strikes at the foundations of how foundations operate. The mechanism of the changes is based on the assumption that every form of a foundation's activity must be taxed in a manner similar to standard business entities.

The increase in the tax rate to 19 percent is the main point of the draft, as reported by Business Insider on August 17, 2026. The finance ministry argues that such a move is intended to curb abuses related to tax avoidance, which has been signaled multiple times in government analyses.

For entrepreneurs, this means the end of a period of low burdens. The family foundation, which was supposed to protect capital from dispersion, becomes an entity with a higher operating cost in the new legal reality. Market observers point out that a 19 percent tax equalizes the burdens of foundations with the taxation of dividends or capital gains of individuals. In practice, this erases some of the competitive advantages for which many family businesses decided on this legal vehicle.

The Ministry leaves no illusions about the direction of the changes. If the draft maintains its current form, foundations will cease to be a tax haven for the tax authorities and will become full-fledged taxpayers. For founders, this means the necessity of recalculating whether maintaining a foundation still makes economic sense at such a rate. Many of them are already looking for alternative succession strategies.

Comparison table: current status vs. status after 2026

Calculations: how will the fiscal burden increase?

The Ministry of Finance's draft from August 5, 2026, marks the end of an era of relative calm in succession planning. The ministry explicitly communicates that family foundations have become an arena for tax abuse, which justifies a radical cut. The sharp change in the tax rate to the 19 percent level will strike at the foundations upon which these structures were built. This is not cosmetic; it is a real burden that will change the math of every benefit paid out.

For foundations, this means narrowing the room for maneuver regarding liquidity. Existing payout models for beneficiaries, designed with lower operating costs, now require a thorough review for solvency. Capital that was supposed to go to the family will, to a large extent, feed the state budget. The tax authorities are closing the door that entrepreneurs used to protect assets from excessive taxation.

Imagine a foundation that achieved a profit of 1,000,000 PLN in a tax year from dividends and the sale of shares in subsidiaries. Before the change in regulations, the family foundation benefited from broad subject-matter exemptions, which meant that the CIT tax was 0 PLN at the moment these funds were accumulated within the foundation. The entire million zlotys could be reinvested or allocated for payouts to beneficiaries (while maintaining appropriate PIT rigors).

After the introduction of the 19 percent rate, the situation changes drastically. From the same profit of 1,000,000 PLN, the foundation will have to pay 190,000 PLN in income tax directly to the state budget. The foundation's net profit after tax will therefore be 810,000 PLN. The difference of 190,000 PLN is the real cost of introducing the new regulations. From the perspective of asset owners, this means that nearly one-fifth of the generated capital will be depleted for the benefit of the tax authorities, which drastically changes the profitability of investments conducted within the foundation. Reinvestment decisions will have to take into account this new, significant cost, which for many family businesses may prove to be an insurmountable barrier.

Here are the facts defining the new tax reality:
- Date of publication of the draft tightening regulations: August 5, 2026 (Deloitte).
- Target foundation tax rate: 19 percent (Business Insider Polska).
- Goal of changes: curbing tax abuse (money.pl).

We will know the true cost of this revolution with the first payouts. The transition from preferential rates to a uniform 19 percent level will trigger a chain reaction. Foundations are now becoming ordinary taxpayers. From the perspective of asset owners, this means the necessity of an immediate revision of existing strategies.

Ministry arguments: fighting abuse

The Ministry of Finance has stopped looking the other way regarding family foundations. In the draft from August 5, 2026, the ministry explicitly proposes raising the tax rate to 19 percent. This is not a move calculated to increase budget revenues out of greed, but to seal a system that, in the opinion of officials, has become leaky.

The government drew a line in the sand on June 15, 2026. At that time, reports revealing specific abuses were published. Officials stopped treating foundations as succession tools and began to see them as vehicles for tax optimization. This confirms the diagnosis made by money.pl in an article from August 13, 2026, where it was explicitly written that foundations are used for tax avoidance. The finance ministry does not intend to tolerate the further use of a legal structure, which was supposed to serve the protection of family assets, for aggressive tax planning.

Raising the rate to 19 percent is intended to level the playing field and stop the practice. Entrepreneurs who used foundations as safe havens must reckon with the fact that the argument about supporting Polish family capital in the face of data on millions leaking out has ceased to be sufficient for the ministry. The Ministry of Finance is moving from the observation phase to the legislative offensive phase. The question of whether a 19 percent tax will actually eliminate abuse, or merely force tax advisors to look for more sophisticated paths, remains open. The government decided that a simple hike is better than watching the erosion of the tax base.

Impact on the profitability of asset structures

The Ministry of Finance's draft from August 5, 2026, puts a period at the end of the discussion about family foundations. The ministry proposed raising the tax rate to 19 percent, which strikes at the foundations of existing asset optimization. This is a move that changes the math for founders. It is no longer just about safely passing on succession, but about real profitability, which will melt away after these regulations come into force.

For months, foundations were pointed out by tax authorities as tools used for tax avoidance. The government, after a review of the act conducted on June 15, 2026, as reported by Prawo.pl, moved from diagnosis to action. The justification is ruthless: sealing the system. From the taxpayer's perspective, this means the necessity of a quick revision of plans. Tax efficiency, which was the main lure for entrepreneurs establishing foundations, ceases to be the deciding argument.

In practice, changing the rate to 19 percent means the end of the era of cheap asset management in this form. Foundations cease to be a privileged entity for the tax authorities. Entrepreneurs who entered these structures, counting on long-term savings, have found themselves in a trap. Now they must recalculate whether, with such a high burden, the costs of running a foundation, its legal and accounting services, still justify the sense of maintaining this structure. For many families, the answer may be disappointing. The net profit, which was supposed to be the basis of liquidity for future generations, will be depleted by the new levy, which will force a return to traditional forms of capital management.

This situation forces family business owners to analyze alternative holding forms. While previously the foundation was tax-unbeatable, now its advantage over a standard limited liability company or limited partnership has significantly decreased. The costs of maintaining a foundation, including requirements regarding audits or accounting specifics, in the absence of a tax benefit, become a burden, not a privilege.

Revolution instead of evolution – expert voices

The tax advisory sector has no illusions: the Ministry of Finance's draft from August 5, 2026, is the end of the current vision of family foundations. The ministry wants to curb abuse and makes the matter clear: the tax rate will rise to 19 percent. There is no room for half-measures here. For many taxpayers who believed in the stability of regulations introduced just over a dozen months ago, this is a blow to the foundations of their succession planning.

Piotr Aleksjejuk, as early as July 1, 2026, analyzing the direction of changes in Rzeczpospolita, explicitly described the proposed modifications as a revolution instead of an evolution. His diagnosis highlights the sentiment among advisors: the existing benefits, which were supposed to attract capital to the country, are becoming a target for the tax authorities. Experts have no doubt that the current proposal of the Ministry of Finance will force business into the painful necessity of reorganizing asset structures. Business owners who have already managed to park their assets in foundations are today recalculating whether, with a 19 percent burden, maintaining this vehicle even makes sense anymore.

The market is reacting with skepticism. Instead of the predictability that was promised when creating the act, we are dealing with nervous searching for safe havens for capital. Someone who invested in a family foundation with a long-term strategy in mind is facing the question: won't the finance ministry change its mind in another two years? The scale of the changes suggests that the state has deemed foundations too airtight in the context of tax avoidance. For taxpayers, this means one thing: the time of peace has definitely ended, and the costs of legal and tax services for such structures will increase.

It is worth noting the psychological aspect of the changes. Trust in the legislator has been damaged. Entrepreneurs who built succession plans based on guarantees of legal stability feel cheated. In comments appearing in business circles, there is a recurring fear of further legislative uncertainty. Is 19 percent the target rate, or just a stop on the way to even higher taxation? The Ministry of Finance is silent on this issue, which further fuels anxiety.

For law firms, this means increased traffic in the area of restructuring. Many foundations will likely be dissolved in a short time if it turns out that running them is more expensive than direct ownership of shares by individuals. The costs of liquidating a foundation, taxes on distributing assets to founders, and the necessity of re-transforming structures are challenges that boards and founders will have to face in the coming months.

What this means for you

For current founders, this means the necessity of recalculating the profitability of existing structures. The state budget and tax authorities will gain, while families building multi-generational wealth, for whom the foundation is becoming a more expensive tool than assumed, will lose. It is necessary to conduct an asset audit, check which assets generate the greatest burdens in the new system, and decide whether maintaining the foundation is still justified. Each case requires an individual analysis with a tax advisor, because automatically transferring assets back to individuals may involve negative tax consequences under PIT.

Questions and answers

By how much will the tax in a family foundation increase?

According to the draft from August 5, 2026, the tax rate is to increase to 19 percent.

Why is the Ministry of Finance changing the regulations?

The ministry claims that foundations are being abused for tax avoidance and wants to seal the tax system by equalizing rates.

Is a family foundation still profitable after the changes?

The profitability of structures will fall, which forces taxpayers to revise asset strategies – as expert Piotr Aleksjejuk points out, we are facing a revolution in the approach to these structures, which requires a recalculation of costs and benefits.

What were the main reasons for the review of the regulations?

The finance ministry conducted a review in June 2026, pointing to the growing scale of the use of foundations as tax optimization tools, which was confirmed by reports from, among others, the portal pb.pl and government analyses.

What does the change mean for people planning succession?

Entrepreneurs must include higher tax burdens in their long-term plans, which may affect the financial liquidity of the foundation and the amount of benefits paid to beneficiaries.

Does the change of the rate to 19 percent apply to all foundations?

Yes, the draft assumes the introduction of a uniform 19 percent rate for all family foundations, which equalizes their taxation with other forms of capital investment by individuals.

When are the regulations supposed to enter into force?

The draft law is dated August 5, 2026, and refers to the necessity of sealing the system, which in practice means the government's pursuit of implementing the changes as quickly as possible after the legislative process is completed.

Do experts predict further changes?

Piotr Aleksjejuk in Rzeczpospolita assesses the current changes as a revolution, suggesting that the existing legal certainty has been violated, which prompts business to exercise great caution in long-term planning.

What is the main threat to founders?

The main threat is the loss of profitability of the foundation and the risk associated with uncertainty regarding the further legislative steps of the finance ministry, which forces constant monitoring of the legal environment.

Will the family foundation lose its meaning after the change in regulations?

For many founders, the economic sense of the foundation may be undermined, which is why it is necessary to perform detailed calculations for each individual structure based on the new tax regulations.

Sources

Article prepared by the Wiadomości PRO editorial team with the support of artificial intelligence. Facts come from the sources provided above.