TAX SOLUTIONS IN THE PROPOSED BILL ON REGISTERED PARTNERSHIPS

The proposed bill on registered partnerships introduces a range of new tax solutions aimed at simplifying the financial lives of couples who do not formalize their relationships through marriage but seek equal rights, particularly in financial matters, inheritance, and tax liability.

A fundamental distinction between marriage and a registered partnership is that the default property regime for registered partnerships is set to be separate property. This means that each partner retains their individual property, both acquired before and during the partnership. However, the regime can be altered through a “partnership property agreement” drawn up as a notarial deed, allowing partners to establish joint property, similar to married couples. Partners may also establish a separate property regime with the equalization of gains, ensuring the right to claim compensation for differences in accumulated assets upon the partnership’s dissolution.

The bill proposes significant changes to tax laws, aligning the tax status of individuals in partnerships with that of married couples. Partners will be able to file joint personal income tax (PIT) returns, potentially offering financial benefits similar to those available to married couples, particularly in terms of tax relief, such as child tax credits.

Another key change is granting tax exemptions on inheritances and donations for partners. Currently, individuals in informal relationships are treated as unrelated persons and placed in the third tax group, which comes with a low tax-free amount and high tax rates (12–20%). Following the amendment, partners will be classified under the first tax group, with a higher tax-free threshold (PLN 36,120) and lower tax rates. Additionally, they will be eligible for exemptions on the same terms as spouses, which includes exemptions on inheritances from a deceased partner or tax-free gifts.

Aligning the status of partners with that of spouses has far-reaching practical effects. After the changes are implemented, partners will be able to inherit property such as apartments or housing cooperative share rights without paying inheritance tax. The changes also expand eligibility for certain exemptions, such as the housing exemption, and provide tax-free savings on accounts in housing cooperatives, which were previously available only to spouses. An important addition is the equalization of tax liability for partners. In cases where tax debt accrues during the shared property period, partners will be liable for these obligations up to the value of their share in the joint property. This reinforces the financial stability of partners and safeguards their shared interests. The planned changes in Polish law represent a step towards tax equality between partners and spouses.

The provisions take into account the needs of these individuals, offering them tools that enable easier management of shared property and access to more favorable tax conditions. The bill introduces solutions enabling partners to file joint tax returns, benefit from tax exemptions on inheritances and gifts, and establishes mechanisms that protect them from the financial impact of potential tax debts.