“OKI can bring billions of new investments to the stock market.” The government presented the draft bill

Assets under OIC will be exempt from taxation up to the value of PLN 100,000. PLN accumulated in the tax year, and investment assets will be able to benefit from this exemption in the full amount, while savings assets up to PLN 25,000. PLN – results from the draft act on OIC.

Tax exemption limits in OIC

The project envisages the creation of a Personal Investment Account (OKI), intended for natural persons. The product is to be personal and voluntary, with the possibility of depositing and withdrawing funds at any time.

New tax mechanism: tax on the value of assets

It is planned that the value of assets accumulated in OKI is only subject to taxation tax on the value of assets. For taxation with this tax, the country in which capital investments or deposits are made as part of the assets accumulated in OKI is irrelevant, as long as they are consistent with the regulations specifying the rules for saving in OIC.

“The special nature of the tax on the value of assets results from the fact that the tax base is in fact the result of the algorithm specified in the Act, which consists of: daily valuations of accumulated assets determined depending on the type of investment or savings (taking into account the balance of payments and withdrawals made on the day of payment) and the amount of payments made and the number of days in the year in which the taxpayer has OIC. It can therefore be concluded that the tax on the value of assets is a special tax, i.e. it is not strictly an income tax or a tax property” – it was written in the justification of the proposed act.

It was stated that the tax base for the tax on the value of assets will be the sum of the value of assets accumulated by the taxpayer in all OKI owned by him in a given tax year. Therefore, if a taxpayer has more than one OKI in the tax year (which will be possible from January 1, 2028), the basis for calculating the tax will be the total value of all assets accumulated in such accounts in a given tax year.

The tax rate on the value of assets in the tax year will be 19%. the value of the reference rate of the National Bank of Poland in force on October 31 of the year preceding the tax year, but not less than 0.1%, with the tax rate rounded down to two decimal places.

Assets within the account will be exempt from taxation up to PLN 100,000. PLN, including investment assets denominated in PLN
(including shares, bonds and other financial instruments mostly admitted to trading on the domestic regulated market or introduced to the alternative trading system, investment funds) will be able to benefit from this exemption in the full amount (i.e. up to PLN 100,000), while savings assets denominated in PLN (including deposits, savings bonds) up to PLN 25,000. zloty.

Purpose of the act: PLN 74 billion for the WSE

Financial institutions operating OIC are obliged to provide both the saver and the tax authorities with information on the value of assets and payments to OIC.

The justification for the proposed act states that the OIC aims to deepen the capital market and increase its liquidity by introducing a tax incentive supporting investment.

It was reported that with a conservative assumption that 40 percent inflows to the stock market and 30 percent inflows to investment funds will reach the domestic market, it is possible to estimate the scale of funds that will potentially go to companies listed on the WSE. The estimated total inflow of new funds to the WSE by 2040 will amount to approximately PLN 74 billion.

Who will run the account and what can be invested in?

An agreement for operating OIC can be concluded with:

• national bank,
• an entity conducting brokerage activities,
• investment fund,
• insurance company,
• voluntary pension fund.

It has been defined that the assets collected in OKI are:

• funds in a bank account or
• funds in a cash account with an entity conducting brokerage activities
• bonds that are treasury savings securities,
• participation units of an insurance capital fund,
• investment fund participation units,
• settlement units of the voluntary pension fund,
• securities traded on a regulated market or alternative trading system,
• financial instruments other than securities, traded on a regulated market or in an alternative trading system.

Account maintenance rules: no joint accounts

The investor will be able to accumulate assets in an insurance capital fund under a life insurance contract with an insurance capital fund concluded before the date of concluding the contract for operating OKI.

In the case of OIC in an insurance company, when the assets of an investor on OKI are collected in more than one insurance capital fund, the insurance company will separate information on the total value of all participation units of each insurance capital fund.

In the case of OIC in an investment fund, the agreement for operating OIC may provide for the placement of assets in more than one investment fund managed by the same investment fund company. The investor may convert participation units of an investment fund into participation units of other investment funds managed by the same investment fund company operating OKI.

The investor will be entitled to change the financial institution maintaining the OIC by making a transfer payment.

The Act does not provide for maintaining a joint OKI account for spouses, nor does it provide for its operation by minors. Assets accumulated on OIC are to constitute the private property of the investor, who may collect them freely and is entitled to conclude more than one agreement for operating OKI. (PAP Business)

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