Family foundation chart of accounts: how to build it? Accounts, analytics and sample journal entries

A family foundation’s chart of accounts is part of the accounting policy, which the management board sets out in writing. The regulations do not impose a ready-made chart of accounts template for a family foundation, so it has to be designed around the foundation’s assets and tax settlements. The most important thing is to separate the founding fund, revenue sources, benefits for beneficiaries and CIT settlements.

A family foundation’s chart of accounts and the accounting policy

The chart of accounts is part of the documentation of accounting principles that every entity must have under Article 10 of the Accounting Act. The foundation’s management board sets out this documentation in writing and updates it. The chart of accounts specifies which accounts the foundation keeps and how subsidiary ledgers are linked to them.

A family foundation is a legal person, so it keeps full books of account. The accounting policy covers, among other things:

• determination of the financial year,
• methods of measuring assets and liabilities,
• the company chart of accounts with rules for classifying events,
• rules for keeping subsidiary ledgers,
• a description of the data processing and data protection system.

In a family foundation, the policy should additionally specify how the founder, the beneficiary, the type of asset, the source of revenue and the tax effect of an event are identified. This information is needed for CIT settlements and for the financial statements. We offer support in this area as part of our accounting policy preparation service.

How does a family foundation’s chart of accounts differ from a company’s chart of accounts?

The basic accounting principles are the same for a foundation and a company. The difference lies in the substance of events and their tax consequences. In a company, the central role is played by share capital and the payment of dividends, while in a family foundation it is played by the founding fund and benefits for beneficiaries.

Contributing assets to a family foundation is not an in-kind contribution to a company. That is why it is not advisable to copy a company’s chart of accounts unchanged. The accounts have to be adapted to the structure of the foundation.

How to build a family foundation’s chart of accounts?

It is worth designing a foundation’s chart of accounts based on the events that will actually occur, and only then assigning numbers. The account groups may be standard, but the analytics must reflect the specific nature of the foundation. The account numbers below are examples and should follow from the accounting policy of the particular foundation. We prepare the draft chart of accounts as part of our accounting services for family foundations.

Sample structure of the chart of accounts:

Founding fund and contributed assets

The founder contributes assets to cover the founding fund with a value specified in the statute, not lower than PLN 100,000 (Article 17 of the Family Foundation Act). The foundation may not return these assets to the founder, unless the Act provides otherwise (Article 20). The founding fund is a single fund of the foundation, but it is worth keeping its account with analytics by founder.

When assets are contributed, three different values arise:

• the value of the assets for the purposes of the Family Foundation Act, i.e. the market value of assets other than cash on the date of contribution (Article 19),
• the value according to the condition and prices at the time of contribution and the tax value, which are entered in the inventory of assets (Article 27),
• the carrying amount, determined in accordance with the Accounting Act and the accounting policy.

These values do not have to be equal. The chart of accounts and subsidiary ledgers should make it possible to link each asset to the inventory of assets.

Permitted activity and activity outside Article 5 of the Act

Article 5 of the Family Foundation Act lists a closed catalogue of a foundation’s business activities. It includes, among others, rental and lease, participation in companies and funds, trading in securities and disposal of assets that were not acquired solely for the purpose of further disposal. For activity outside this catalogue, the foundation pays 25% CIT (Article 24r of the CIT Act).

That is why a single “revenue” account is not enough. It is worth separating revenue into at least:

• rental and lease,
• revenue from shares, stock and funds,
• disposal of assets,
• interest on loans,
• activity that may go beyond Article 5.

Rental to the founder, a beneficiary or entities related to them also requires separate analytics. Under Article 6(8) of the CIT Act, the exemption does not cover revenue from rental or lease if its subject is an enterprise, an organised part of an enterprise or assets used in the business activity of such a person or entity, where the statutory conditions are met. The mere fact that the tenant is the founder or a beneficiary does not yet determine the loss of the exemption.

Benefits for beneficiaries and settlements with them

A benefit for a beneficiary is the transfer of cash, items or rights to them or making them available for their use in accordance with the statute and the list of beneficiaries (Article 2(2) of the Family Foundation Act). A benefit is not a business cost of the foundation. It is a distribution of assets in line with the foundation’s purpose.

The chart of accounts needs a separate account for settlements with beneficiaries, with analytics by beneficiary and type of benefit. Non-cash benefits, e.g. free or partly paid use of a flat, must also be recognised and measured, because 15% CIT is also paid on them. The rules for their valuation are set out in Article 24q(5) of the CIT Act.

Tax accounts: CIT on benefits and on non-permitted activity

A family foundation benefits from the CIT exemption, but it pays tax in certain situations. The most important are the 15% CIT under Article 24q of the CIT Act, which covers benefits, assets transferred upon the dissolution of the foundation and so-called hidden profits, and the 25% CIT on activity outside Article 5 (Article 24r). It is worth settling each of these taxes on a separate settlement account, and separating hidden profits in the analytics, e.g. for transactions with the founder or a beneficiary.

Separate accounts make it easier to:

• pay the 15% CIT on time, by the 20th day of the month following the transfer of the benefit,
• prepare the annual CIT-8FR return, filed by the end of the third month of the following year,
• determine the tax base for activity outside Article 5,
• reconcile taxes with the books at the end of the year.

Sample journal entries in a family foundation

The examples below show the logic of the entries, not the only correct option. The specific accounts and the method of presentation in the financial result should be determined by the accounting policy. For complex events, it is worth agreeing the decision with the statutory auditor and the tax adviser.

Contribution of real estate or shares

The founder contributes real estate to the foundation to cover the founding fund. With a carrying amount adopted in accordance with the accounting policy of PLN 5,000,000, the entry may look like this:

• Dr Real estate (analytics: property X, founder A) PLN 5,000,000
• Cr Founding fund (analytics: founder A) PLN 5,000,000

Where shares are contributed, long-term financial assets are recognised on the Dr side. At the same time, the asset must be entered in the inventory of assets with its value at the time of contribution and its tax value.

Revenue from rental

The foundation rents out premises and issues an invoice for PLN 10,000 net per month. The entry may look like this:

• Dr Settlements with tenants PLN 10,000 (plus VAT, if the rental is subject to VAT)
• Cr Revenue from rental (analytics: property X, rental to an unrelated entity) PLN 10,000

The analytics show straight away whether the rental falls within Article 5 of the Act and whether it concerns the founder or a beneficiary.

Payment of a benefit to a family foundation beneficiary

The foundation pays a beneficiary a cash benefit of PLN 100,000. The entry may look like this:

• Dr Settlement of benefits for beneficiaries PLN 100,000
• Cr Settlements with beneficiary B PLN 100,000
• Dr Settlements with beneficiary B PLN 100,000
• Cr Bank account PLN 100,000

At the same time, the foundation recognises 15% CIT, i.e. PLN 15,000:

• Dr Income tax (Article 24q) PLN 15,000
• Cr Public-law settlements: CIT 15% PLN 15,000

The beneficiary receives the full PLN 100,000, because the tax is borne by the foundation. The method of presenting benefits and tax in the financial statements should be determined by the accounting policy.

Chart of accounts and JPK_KR_PD: account tags in a family foundation

A family foundation submits its books in the JPK_KR_PD structure, even though it benefits from the CIT exemption. The Ministry of Finance indicates that Article 9(1d)(1) of the CIT Act exempts taxpayers exempt from CIT from this obligation, with the exception of family foundations. The obligation is being introduced in stages: foundations filing a monthly JPK_V7M submit their books for years beginning after 31 December 2025, and the others for years beginning after 31 December 2026. However, it is worth designing the chart of accounts with account tags in mind from the outset.

Accounts in JPK_KR_PD are marked with tags from the dictionaries set out in the Regulation of the Minister of Finance on additional data. The Ministry of Finance explains that every account whose content corresponds to a tag is marked. If one account contains events with different tags, the Ministry of Finance indicates that they should be divided into homogeneous groups on separate analytical accounts.

In a family foundation, this means in particular separating:

• revenue covered by the exemption,
• revenue from activity outside Article 5,
• settlements of the 15% CIT on benefits,
• other asset-related transactions.

When should a family foundation’s chart of accounts be updated?

The chart of accounts has to be updated whenever the foundation’s activity, its assets or the regulations change. The Accounting Act does not require an annual update, but a review before the start of the financial year is good practice. A chart of accounts from the day the foundation was established is rarely sufficient for the following years.

An update is needed, among other things, when the foundation:

• acquires a new type of asset, e.g. its first property for rent,
• starts paying non-cash benefits,
• grants loans to companies or beneficiaries,
• enters into transactions with the founder or related entities,
• becomes subject to new obligations, e.g. JPK CIT.

Changes to the chart of accounts are introduced by the management board by updating the accounting policy.

FAQ

Is there a template chart of accounts for a family foundation?

There is no official template chart of accounts for a family foundation. The Accounting Act requires the foundation to have a company chart of accounts as part of its accounting policy, but its content depends on the entity. In practice, standard account groups are used and the analytics are adapted to the specific nature of the foundation: the founding fund, benefits, revenue sources and CIT settlements.

How should the contribution of assets to a family foundation be recorded?

The contribution of assets to cover the founding fund is usually recognised as an increase in assets (e.g. real estate or shares) and in the founding fund. It is worth keeping the fund account with analytics by founder. The carrying amount is determined in accordance with the accounting policy. The value at the time of contribution and the tax value are additionally entered in the inventory of assets.

Is a benefit for a beneficiary a cost of the foundation?

No. A benefit is a transfer of the foundation’s assets to a beneficiary in accordance with the statute, not a tax-deductible cost. That is why it is worth recording it on a separate account, separately from business costs. On a benefit, the foundation pays 15% CIT. The tax is borne by the foundation and does not reduce the amount paid to the beneficiary.

Why must the chart of accounts separate revenue sources?

Because a family foundation may conduct activity only within the scope of Article 5 of the Family Foundation Act. Activity outside this scope is taxed at 25% CIT. Separate accounts for rental, shares, disposal of assets and interest make it possible to show which revenue is exempt and which is taxed. They also make it easier to tag accounts in JPK_KR_PD.

Does a family foundation’s chart of accounts have to be adapted to JPK CIT?

Yes. A family foundation is not exempt from JPK CIT, even though it benefits from the CIT exemption. Accounts in JPK_KR_PD are marked with tags from the Ministry of Finance dictionaries. If one account contains events with different tags, they have to be separated into analytical accounts. It is easiest to design this when creating the chart of accounts.

How ALTO can help

We design charts of accounts and accounting policies for family foundations from the moment they are established. We help recognise founders’ contributions, separate revenue sources and prepare accounts for JPK_KR_PD. Our accountants work with tax advisers, so the account structure takes account of the 15% and 25% CIT settlements from the outset.

Accounting for family foundations at ALTO Advisory is the responsibility of Katarzyna Pędzich, Accounting Senior Manager.

Sources

• Act of 26 January 2023 on Family Foundations (Ustawa z dnia 26 stycznia 2023 r. o fundacji rodzinnej), Journal of Laws 2023, item 326, as amended, Articles 2, 5, 17, 19, 20, 27
• Accounting Act of 29 September 1994 (Ustawa z dnia 29 września 1994 r. o rachunkowości), Journal of Laws 2026, item 522, Article 10
• Corporate Income Tax Act of 15 February 1992 (Ustawa z dnia 15 lutego 1992 r. o podatku dochodowym od osób prawnych), Journal of Laws 2026, item 554, Articles 6, 9, 24q, 24r
• Regulation of the Minister of Finance of 16 August 2024 on additional data to be added to the accounting books submitted under the Corporate Income Tax Act (Rozporządzenie Ministra Finansów z dnia 16 sierpnia 2024 r. w sprawie dodatkowych danych, o które należy uzupełnić prowadzone księgi rachunkowe podlegające przekazaniu na podstawie ustawy o podatku dochodowym od osób prawnych), Journal of Laws 2024, item 1314, as amended
• Ministry of Finance, JPK_PD questions and answers (Pytania i odpowiedzi JPK_PD): https://www.podatki.gov.pl/podatki-firmowe/jednolity-plik-kontrolny/jpk_pd/pytania-i-odpowiedzi-jpk_pd