The Minister of Finance presented the assumptions of the "OKI" program. Poles could invest up to PLN 100,000 tax-free.

Thanks to the introduction of the Personal Investment Account (OKI), it will be possible to invest up to PLN 100,000 tax-free, Minister of Finance and Economy Andrzej Domański announced on Tuesday. He added that above PLN 100,000, a tax of less than 1% of the investment value will be charged.

At a press conference, Domański presented the assumptions of the so-called Personal Investment Account.

"We are offering a Personal Investment Account of PLN 100,000 tax-free. This account will provide Polish households with the ability to effectively save and invest without capital gains tax up to PLN 100,000," Domański announced. He emphasized that the account is voluntary.

He added that the investment account will be able to hold funds such as stocks, bonds, and other instruments admitted to trading, such as ETFs. Meanwhile, the share of deposits and savings bonds included in the savings portion of the account will be limited to PLN 25,000.

The Minister emphasized that above PLN 100,000, a "low, stable tax on these excess, higher assets, amounting to less than 1%, will be charged." The Ministry of Finance explained that this tax will range from 0.8 to 0.9% of the investment value.

Domański stated that the OKI concept is based on the Swedish ISK system, introduced in 2012. He emphasized that 40% of the country's adult population uses Swedish ISK accounts. "We analyzed virtually all solutions currently available in the European Union and concluded that, based on the Swedish experience, we can build the most beneficial tool for building the savings structure of Polish households," he said.

"For an investment of PLN 50,000 and a 5% rate of return, the current capital gains tax would be PLN 475. If you use an OKI account, this tax would be zero, but if you earn a 10% return on the same invested amount, the benefit is even greater. With current solutions, the tax would be PLN 950, while with an OKI account, the tax would be zero," Domański explained.

Capital gains tax was introduced in Poland in 2002 by then-Finance Minister Marek Belka, who served in Leszek Miller's government. The popular name for the tax, the Belka tax, comes from his surname. It covers income from bonds, bank deposits, and profits from the sale of securities, such as mutual fund units or shares. The tax rate is 19%. The method of collecting and settling the tax depends on the type of assets on which it is levied. (PAP)

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