Positive individual tax ruling confirming the availability of CIT exemption for an Irish investment fund
MDDP’s Real Estate Team has successfully obtained an individual tax ruling in which the Director of the National Revenue Information Service (Krajowa Informacja Skarbowa – KIS) confirmed that an Irish investment fund is entitled to benefit from the corporate income tax (CIT) exemption available to investment funds under Polish tax law (individual ruling of 24 June 2026, case reference: 0114-KDIP2-1.4010.154.2026.1.KS).
The case concerned an Irish Collective Asset-management Vehicle (ICAV) which, as part of its investment activities, acquires bonds issued by Polish companies operating in the energy sector.
The fund holds the status of a Qualifying Investor Alternative Investment Fund (QIAIF) and is subject in Ireland to corporate income tax on its worldwide income. At the same time, it benefits from a partial corporate tax exemption. The applicant is externally managed and, under Irish law and its constitutional documents, is authorised to invest, among other assets, in real estate.
It was this latter feature that had raised concerns in recent years. The Polish tax authorities had previously challenged the availability of the CIT exemption for investment funds whose activities, even on an incidental basis, allowed for investments in real estate.
In the ruling issued, however, the Director of KIS confirmed that the fund satisfied all conditions for the application of the exemption provided for in Article 17(1)(58) of the Polish CIT Act. Consequently, the authority confirmed that income derived by the fund from payments received from Polish companies in connection with the bonds it had acquired, including interest payments, qualifies for exemption from Polish CIT. The authority fully endorsed the arguments presented in the application and waived the preparation of a written rationale for the ruling.
Significant implications for the investment fund market
This is only the second individual ruling confirming the availability of the CIT exemption for an Irish ICAV fund. The decision is significant not only for ICAVs but also for other investment funds seeking to benefit from the exemption while retaining the ability to invest in real estate.
The ruling may indicate the emergence of a more favourable approach by the Polish tax authorities to the application of the investment fund exemption and provide grounds for optimism regarding a more taxpayer-friendly administrative practice in the future.
The client was successfully represented by Justyna Bauta-Szostak and Marek Kończak, with support from Justyna Adamska and Maksymilian Włodarczyk.
Broader tax relief for foreign investment funds Investing in Poland
Effective from 1 January 2026, Poland has introduced significant changes to the tax regime applicable to foreign investment funds, widening access to the corporate income tax exemption available under Polish tax legislation. The revised provisions are expected to make Polish investments more attractive from a tax perspective, minimise irrecoverable withholding tax costs and facilitate claims for the recovery of tax paid in earlier periods.
The amendments are particularly relevant for investment funds established outside the European Union and the European Economic Area, including vehicles from jurisdictions such as the United States, the United Kingdom, Canada and Australia. The new rules may also benefit self-managed investment funds, which have historically faced difficulties in meeting the conditions required to access Polish tax exemptions.
#LEARN MORE about the Polish tax exemption available to foreign investment funds >> Extension of tax exemption for foreign investment funds
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