Multiple Founders in a Family Foundation - How Does the Proportion of Contributed Assets Affect the Taxation of Distributions? - A family foundation may have several founders; however, the manner in which they contribute their assets affects the subsequent taxation of distributions paid to the founders and beneficiaries. The proportion of assets attributable to each founder is of k

Multiple Founders in a Family Foundation - How Does the Proportion of Contributed Assets Affect the Taxation of Distributions?

A family foundation may be established by more than one founder. This arrangement is particularly common among spouses, siblings, or parents and children who wish to manage assets belonging to different family members under a single succession mechanism.

However, having multiple founders requires paying special attention to the proportion of the value of assets contributed to the foundation by individual founders. This proportion is not merely for record-keeping purposes; it can directly affect the scope of the personal income tax (PIT) exemption for distributions paid to founders and beneficiaries.

1. Why is the proportion of assets so important?

Pursuant to Articles 27–29 of the Family Foundation Act(1), the inventory of assets must specify, among other things, the value of the assets contributed to the foundation and the current proportion attributable to each founder and the family foundation.

The proportion is determined by comparing the value of assets attributable to a given founder to the total value of assets contributed by all founders and by the family foundation. Importantly, the proportion is recalculated each time additional assets are contributed to the foundation.

This has tax implications. A benefit received by a founder or a beneficiary who, in relation to the founder, belongs to the so-called “zero group” may be exempt from personal income tax (PIT), but only to the extent corresponding to the applicable proportion (see Article 21(49) of the Personal Income Tax Act(2)).

This does not mean, however, that the payment itself is completely tax-free. As a general rule, a family foundation pays 15% CIT on the value of the benefit transferred to the beneficiary. The proportional exemption, on the other hand, applies to additional PIT liability on the beneficiary’s part.

2. Multiple Founders—Is Each Assigned Only Their Own Contribution?

The initial practice of tax authorities in this regard was restrictive. The Director of the National Tax Information Service (KIS) held that, in a foundation established by multiple founders, the calculation of the exemption should generally take into account the individual proportion of assets attributable to a specific founder.

This approach led to particularly unfavorable results in the case of foundations established jointly by immediate family members. For example, when spouses contributed assets to a foundation in equal shares, a literal application of this position could lead to the conclusion that a benefit paid to one of them was exempt from PIT by only 50%.

In 2024, however, the Director of the National Tax Information Service (KIS) abandoned this restrictive position. In interpretations dated June 25, 2024, ref. nos. 0112-KDIL2-1.4011.113.2024.3.JK(3) and 0112-KDIL2-1.4011.114. 2024.3.JK(4), he took taxpayers’ complaints into account and amended the earlier interpretations.

The current line of interpretation is decidedly more favorable.

3. Spouses Who Are Founders


The situation is clearest in the case of spouses.

In an interpretation dated June 17, 2026, ref. no. 0115-KDIT1.4011.413.2026.1.MR(5), the Director of the National Tax Information Service (KIS) approved a full PIT exemption for benefits paid to spouses who are founders of a foundation to which assets subject to statutory community property were contributed. The authority determined that, in the presented situation, the proportion allowing for the application of the exemption is 100% for each spouse.

The Provincial Administrative Court in Warsaw adopted a similar approach in its judgment of November 26, 2025, Ref. No. III SA/Wa 1274/25(6). The court highlighted the unique nature of marital community property. It is not joint ownership in fractional shares—therefore, while it is in effect, one cannot assume that one spouse owns, for example, 50% of a given asset and the other the remaining 50%.

Consequently, the Provincial Administrative Court held that it was correct to assign a 100% share to each spouse with respect to the joint property contributed to the foundation. Furthermore, in the Court’s view, the spouses’ subsequent divorce does not in and of itself alter the previously established proportion. At the time of publication of this post, however, the judgment was not yet final.

4. Aggregating Shares Among Immediate Family Members

This favorable approach is no longer limited to spouses.

A good example is the interpretation by the Director of the National Tax Information Service (KIS) dated March 2, 2026, ref. no. 0112-KDIL2-1.4011.114.2026.1.JK(7). The foundation was established jointly by a mother and her two sons, with each founder contributing 100,000 euros—that is, one-third of the founding capital each.

The Director of the National Tax Information Service (KIS) accepted the position that, for the purposes of the personal income tax (PIT) exemption, a founder may aggregate the proportion attributable to him or her and to other founders who are related to him or her as defined in Article 4a(1) of the Inheritance and Gift Tax Act (8)—that is, who belong to the so-called “zero group.”

Consequently, parent-child or sibling relationships may result in the benefit paid to a founder being fully exempt from PIT, even though specific portions of the assets are formally attributed to individual founders.

For example, if two brothers contribute 80% and 20% of the foundation’s assets, respectively, current practice at the National Tax Information Service (KIS) allows both proportions to be taken into account when calculating the benefit paid to one of them, since the brothers belong to “group zero” in relation to each other.

The situation may differ when the founders are not close relatives. In such a case, there is no basis for automatically aggregating their shares, and the portion of the benefit exceeding the share attributable to the relevant founder may not qualify for the PIT exemption.

5. Subsequent contributions of assets may change the situation

The share is not set in stone.

Pursuant to Article 29(2) of the Family Foundation Act, it must be recalculated each time new assets are contributed to the foundation. Therefore, not only the structure of the founding fund but also subsequent donations to the foundation may be of significant importance.

Donations made by persons outside the group specified in Article 28(2)(1) of the Family Foundation Act require particular caution. This is because, for the purposes of calculating the proportion, assets contributed by an “other person” are considered to be assets contributed by the family foundation itself. This may affect the scope of subsequent PIT exemptions on distributions.

At the same time, profits generated by the foundation itself do not alter the proportion. The Director of the National Tax Information Service (KIS) confirmed this, among other things, in an interpretation dated November 5, 2025, ref. no. 0113-KDIPT2-3.4011.666.2025.3.AK(9). The proportion is altered by the contribution of new assets, not by an increase in the value of existing assets or by income earned by the foundation from investment activities.

6. An inventory of assets should be part of the foundation’s planning

For a family foundation with multiple founders, the inventory of assets should not be treated solely as a technical document.

Even before the foundation is established, it is worth determining:

  • who will contribute specific assets,
  • whether the founders have a relationship with one another that allows for the aggregation of their shares,
  • whether the assets originate from the spouses’ joint or separate property,
  • who may contribute additional assets in the future,
  • and how future donations will affect the shares of individual founders.

This is particularly important in foundations involving several branches of a single family, blended families (i.e., families composed of children from different relationships), or individuals who do not belong to each other’s tax “Group Zero.”

Summary

Having multiple founders does not necessarily mean an automatic limitation on the tax exemption for benefits paid out by a family foundation. Current practice by tax authorities allows, in many cases, for the shares attributable to founders who are in the closest family relationships with one another to be aggregated. Foundations established jointly by spouses are treated particularly favorably, a fact already confirmed both in tax interpretations and in the case law of administrative courts.

At the same time, the proportion is a dynamic category, as subsequent contributions of assets may alter it. For this reason, the method of endowing the foundation with assets should be analyzed even before its establishment, and subsequently whenever there is a significant change in the foundation’s asset structure.

Are you planning to establish a family foundation together with other family members?

Properly structuring the founders, beneficiaries, and rules for contributing assets can be of significant importance for the future tax settlements of the foundation and its beneficiaries. It is worth analyzing these issues before signing the founding deed and the articles of incorporation.

Footnotes:

(1) Act on Family Foundations of January 26, 2023 (Journal of Laws of 2023, Item 326).

(2) Act on Personal Income Tax of July 26, 1991 (Journal of Laws of 2026, Item 592).

(3) Amendment to the Individual Ruling of June 25, 2024, No. 0112-KDIL2-1.4011.113.2024.3.JK, Legalis No. 3423749.

(4) Amendment to the individual interpretation dated June 25, 2024, No. 0112-KDIL2-1.4011.114.2024.3.JK, Legalis No. 3913116.

(5) Letter dated June 17, 2026, from the Director of the National Tax Information Service (KIS), Ref. No. 0115-KDIT1.4011.413.2026.1.MR, LEX.

(6) Judgment of the Provincial Administrative Court in Warsaw dated November 26, 2025, Ref. No. III SA/Wa 1274/25, Lex No. 4103425.

(7) Interpretation of the Director of the National Tax Information Service (KIS) dated March 2, 2025, No. 0112-KDIL2-1.4011.114.2026.1.JK, Legalis No. 3969320.

(8) The Inheritance and Gift Tax Act of July 28, 1983 (Journal of Laws of 2026, item 478).

(9) Interpretation of the Director of the National Tax Information Service dated November 5, 2025, No. 0113-KDIPT2-3.4011.666.2025.3.AK, Legalis No. 3753232.