The provisions of the Polish Deal introduced a new tax relief for Personal Income Tax (PIT) taxpayers investing in an alternative investment company (ASI) or its subsidiaries. The aim of this solution is to encourage investment in high-economic-risk ventures.
Alternative Investment Company (ASI)
An alternative investment company is a form of alternative investment fund, differing from specialized open-ended investment funds and closed-ended investment funds. It can operate in the form of:
- a capital company (limited liability company, joint-stock company, European company),
- a limited partnership or a limited joint-stock partnership, where the sole general partner is a capital company.
An ASI is involved in raising capital from investors and allocating it according to a defined investment policy.
What does the tax relief for investors entail?
Taxpayers can deduct 50% of the expenses incurred for the acquisition (subscription) of shares or stocks in an alternative investment company or a company in which the ASI holds at least 5% of shares (stocks) from their tax base. A condition for benefiting from the relief is to hold the shares (stocks) for at least 2 years.
Deduction Limit
The deduction amount cannot exceed PLN 250,000 in a given tax year.
Who can benefit from the relief?
Taxpayers earning income taxed:
- according to the tax scale (17% and 32% rates),
- with a flat tax (19%).
Rules for returning the relief in case of share disposal
If a taxpayer sells shares (stocks) before the expiration of 24 months from their acquisition date, they are obliged to add the previously deducted amount to their income in the tax year in which the sale occurred.
The tax relief for ASI investors is a beneficial solution for individuals willing to invest in innovative and high-risk ventures. It is worth thoroughly familiarizing oneself with the conditions to fully utilize the available tax opportunities.
