SII asks the Ministry of Finance to reduce the "beam" tax to 9%

Association of Individual Investors (SII) as part of the consultation process  public on the Capital Market Development Strategy  (SRRK) sent an opinion to the Minister of Finance on the Strategy document published by the Ministry. The main demand is to reduce the "beam" tax, from 19% currently in force to 9%. However, this change would not apply to CFD transactions.

Be sure to read: Settle the tax on Forex / CFD transactions in 2019 - Information base

Not only taxes

In the opinion of SII, there are also other proposals for solutions that would interest Poles in investing on the capital market, as well as induce long-term savings. These include intention strengthening the protection of capital market participants, intensifying educational activities related to economy and investing, creating a court and prosecutor's office dedicated to cases related to the financial market, as well as a proposal to compensate losses from units of investment funds with profits from other capital investments.

The Ministry of Finance has its own ideas

Meanwhile, although the Ministry of Finance correctly identifies the need to strengthen the role of retail investors in the context of capital market development plans, the proposed incentives for investors deviate far from solutions both expected by the Association and individual participants of financial markets. However, the proposals of incentives for investors presented in the SRRK project were significantly reduced to the solutions presented by the Ministry in August 2018.

Piotr Cieślak, Vice President of the Board of the Individual Investors Association:

"The strategy proposed by the Ministry in a sense gives the impression of a conservative strategy towards individual investors. This is not a strategy aimed at favoring and rewarding market participants who would like to build their savings consciously and in the long term, including primarily retirement savings based on the domestic capital market. "

Lower tax for long-term transactions

The SII idea focuses on solutions that were proposed in the 2018 Strategy document of the year, in other words: cancellation of the limits of annual payments to IKE and IKZE, abolition of 10% PIT from payments from IKZE, making pension investment plans more attractive (including IKE / IKZE), abolition of time limits contained in the currently binding provisions (obligation to save the calendar year by 5), reduction of "Beams tax" to 9% for investment gains maintained over a period exceeding 12 months in securities listed on regulated markets and MTFs and participation units in open-ended investment funds investing in such listed securities and allowing parents to open IKZE accounts for children. 

SII also proposed additional tax incentives for individual investors in the form of reducing the "Belka tax" to 4% for profits from investments maintained for at least 60 months in securities listed on regulated markets and MTFs and units in open investment funds investing in such listed securities , and in the case of investments maintained for more than 60 months in securities listed on regulated markets and MTF SII, proposes that no tax on dividends be levied.

This would mean that the transactions on the Forex market would not be affected. SII, however, expressed determination against the intentions of the Ministry of Finance. prevent investors investing on CFD instruments from offsetting losses from these instruments to profits from other financial instruments.

Piotr Cieślak adds:

"The conservative proposals of the Ministry of Finance in the NSRD, in particular relating to tax incentives, are incomprehensible in the face of the fact that the Ministry is fully aware that future Polish pensions paid out from the Social Insurance Institution will constitute only a fraction of wages that are currently in the pockets of Poles. Therefore, it is a negative surprise that the proposed strategy does not contain much more incentives to save retirement using instruments available on the capital market. "