The Polish Ministry of Finance is developing significant reforms to the “Belka tax,” Poland’s tax on capital gains, with a comprehensive proposal expected before summer 2025. The central aim is to encourage long-term savings and investment, particularly within the capital market, to stimulate the national economy.
Key Developments and Proposals:
- Impending Reforms: Finance Minister Andrzej Domański confirmed that work is underway on a “complex proposal” for savers, especially those active in the capital market. The announcement of these proposals is anticipated before the summer of 2025.
- Potential Tax Relief: While full details are yet to be disclosed, earlier government communications (including a response to a parliamentary interpellation in January 2025) suggested the possibility of introducing a tax-free allowance for capital gains. This could be linked to an annual limit, potentially based on savings and investments totaling PLN 100,000.
- Scope of Exemption: Such an exemption might apply to interest earned from treasury bonds (with at least a one-year maturity), term deposits (held for at least one year), and profits from the sale of securities, shares, derivative financial instruments, and participation units in capital funds.
- Current Status: The Ministry is currently conducting financial and legislative analysis of these proposals. A definitive timeline for the finalization and implementation of these changes has not yet been set, beyond the planned pre-summer 2025 announcement.
Background and Context:
- The Belka Tax: Originally introduced in 2002, the tax was extended in 2004 to cover most capital gains and set at a 19% rate. It applies to profits from various capital investments, including bank deposits, bonds, shares, investment funds, and dividends.
- Increasing Revenue: Revenue from the Belka tax has seen substantial growth. In the first eleven months of 2024, it reached PLN 10.095 billion, exceeding the total revenue for the entire year 2023 (PLN 9.069 billion) and significantly higher than in 2022. Experts attribute this rise to increased savings rates (partly due to individuals seeking to protect capital from inflation), higher nominal interest rates, and shifts in Poles’ spending habits.
Significant Takeaways:
- Polish savers and investors may soon benefit from changes potentially reducing their tax burden on capital gains, especially for long-term investments.
- The government views these reforms as a crucial step towards boosting domestic investment and overall economic growth.
- Despite potential reliefs, the Belka tax remains an important and, recently, growing source of income for the state budget.
- The exact nature and impact of the reforms will become clearer once the Ministry of Finance releases its detailed proposal before summer 2025.
Source: Idzie ratunek dla naszych oszczędności? Ministerstwo zapowiada zmiany w podatku Belki – Infor.pl
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