Closed-End Investment Funds (FIZ) Subject to CIT Taxation as of 1 January 2017 - Publication of the Act in the Journal of Laws | SSW Tax Alert 14-2016


The Act introducing CIT taxation with respect to closed-end investment funds (FIZ) was published in the Journal of Laws on 29 November 2016.

The final shape of the Act as regards the taxation principles applicable to investment funds has not changed significantly comparing to the draft prepared by the Parliamentary Public Finance Committee. The Act provides for an exemption from taxation for any income generated by open investment funds (FIOs) and specialist open investment funds (SFIOs), excluding SFIOs which apply the principles and investment restrictions set forth for closed-end investment funds.

The Act also introduces an exemption for income generated by closed-end investment funds, provided that such exemption will not be applicable to, inter alia, the following:

  • income from participation in companies / organisational units without legal personality;
  • income from interest on loans extended to companies / organisational units without legal personality;
  • income from interest on equity shares in such entities.

The regulations of the Act with respect to the taxation principles applicable to investment funds enter into force as of 1 January 2017.

Authors

Patrycja Goździowska, Partner, Tax Advisor SSW

Tomasz Wickel, Partner, Attorney at Law SSW