The government changes the taxation of family foundations

On Tuesday, the government will deal with the draft amendment to the CIT Act, which aims to change certain rules for taxing family foundations – according to information published on Monday on the pages of the prime minister's office.

On Monday, the order of the Tuesday meeting of the Council of Ministers was published on the pages of the Prime Minister. It shows that the government will deal with a draft amendment to the Corporate Income Tax Act, which aims to change certain rules for taxing family foundations.

According to the project Only revenues from long -term housing rental will benefit from the Family Exempt Family Foundationso “when the Family Foundation rents the natural persons indicated in the real estate provision for their own housing needs.” Revenues from other types of rental of housing, including short -term rental or all other forms of lease on commercial terms, will be covered by tax on general principles.

The tax will also be covered by income from the sale of property, contributed or transferred to the Family Foundation free of chargeor acquired by the Family Foundation from the entity, if the sale took place within 36 months from the end of the calendar year, in which this brought, transfer or acquisition occurred. The justification for the project indicates that such a limitation will strengthen the “implementation of the statutory goals of the Family Foundation” because “the Family Foundation as a tool of succession should have space to focus on long -term investments.”

The project also assumes, among others, that revenues from participation in the Fund, Cooperative or other entity will not be subject to exemption for the Family Foundation, if they are not subject to income tax, and their revenues, costs, income or losses are treated as properly achieved or incurred by the Family Foundation. The exemption will also not cover revenues from participation in a company that is not a legal person. (PAP)

MS/ Mick/