An AIC is a special type of investment company. It invests in alternative financial instruments, which are not common to traditional investments, such as stocks, bonds, or mutual funds. Its tax form is similar to that of an investment fund. Who benefits from an AIC and what is the alternative investment company’s tax form? Find more information in our article.

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Alternative Investment Company – What is it?

According to the legal definition of Investment Funds and Alternative Investment Fund Management Act, AIC is one of the forms of Alternative Investment Fund. It is different from a specialized open-end investment fund and a closed-end investment fund.

The subject of AIC is permitted by law

The sole subject of the activities of AIC (except for the exceptions specified in the Act), is to collect assets from multiple investors for the purpose of investing according to their interests. This should be followed in compliance with the fixed investment policy.

AIC cannot simultaneously engage in such activities and conduct other business activities. Only an internally managed AIC can combine the activities of an ASI and an ASI manager.

Alternative investment companies – advantages and disadvantages

Alternative investment companies have advantages and disadvantages. You should consider them before making an investment decision. Below we present some of them:

Advantages of alternative investment companies:

  • Potentially high profits. Alternative financial instruments, such as real estate, art, or hedge funds, can bring investors greater profits than traditional financial instruments.
  • Diversification of investment portfolio. Investing in alternative financial instruments allows for portfolio diversification and risk mitigation.
  • Access to advanced investments. AIC allows investors access to investments that are normally only available to large investment institutions.

Disadvantages of alternative investment companies:

  • High investment risk. Investments in alternative financial instruments are generally riskier than traditional financial instruments. Market changes can affect the value of investments and lead to losses.
  • high cost. Investing in alternative financial instruments such as real estate can carry high costs. They may include property taxes, maintenance costs, as well as maintenance costs.
  • Limited liquidity. Alternative investment companies often have long investment periods and may have limited liquidity. This means that investors may find it difficult to withdraw their funds before a certain time.

It is also worth remembering that alternative investment companies are aimed at investors with more knowledge and experience in investing. As a result, they are willing to take greater risks to potentially gain higher returns.

Are you interested in an alternative investment company but lack knowledge or experience?

Ask our experts for help. Experienced experts are an excellent source of knowledge and support. Especially when taking the first step in investing. Contact us today!

Forms of taxation of alternative investment companies

Taxation of an alternative investment company depends on its legal form and investment structure. Generally, an AIC has a “pure” investment company structure. This means that its profits are taxed at the company level and then paid out to investors in the form of dividends or capital gains. In Poland, the income tax rate on capital gains is 19%. On dividends, it is 19% or 5%, depending on the investor’s tax status.

An AIC can also be registered, for example, as a limited joint-stock partnership company (SKA) or a limited liability company (sp. z oo). In the case of SKA, investors are liable only up to the amount of their contribution. Profits and losses are subject to taxation at the level of investors, who also bear the tax costs. As an LLC (sp. z oo), taxes are calculated at the company level, and profits are paid to investors as dividends.

In any case, before deciding to invest in an AIC, an investor should consult his tax position specialist. You may consult a tax advisor or accountant to understand the tax consequences of the investment.

What is the company tax in Poland? Find out in the article.

Tax preferences for AIC

The Corporate Income Tax Act provides exemption for certain income received by AICs. It concerns the following matters:

  • Only as per Section 17(1)(58A) of the CIT Act Income from sale of shares or stock An alternative investment company that sells shares (stock) held directly and continuously for a period of at least 2 years is exempted if it is not less than 5% of the shares (stock) in the capital of the company. Stock) is being sold. Note! The above exemption does not apply to income (revenue) from the sale of shares (stock) of the company. If at least 50% of the value of the property – directly or indirectly – of real estatee situated in Poland, or rights to such real estate
  • In case of AICs as capital companies, It is also possible to take advantage of the dividend discount. It is consequential to Section 22(4) of the CIT Act, the conditions of this exemption have been fulfilled. That is, if the AIC holds at least 10% shares/stock of the company for 2 consecutive years.
  • As a financial enterprise, alternative investment companies CIT is not subject to the rules in section 15c of the Act. It concerns recognizing debt financing costs as tax-deductible costs. thus, AIC may include all costs (eg interest, commissions) associated with obtaining debt financing as tax deductible costs. Moreover, there is no need to respect statutory limits. This is an important trade facilitation.


Choosing an Alternative Investment Company (AIC) can be a good solution for many people. Especially for those with limited liabilities, low operating costs, or preferential tax rules. AIC is also subject to less supervision by the Financial Supervision Commission (KNF). Its performance is not only cheaper but also less complicated. For example, investment funds are the result of non-involvement in the management and service of the society.

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