Open access
TAX INCENTIVES TO PROMOTE NATIONAL HERITAGE PROTECTION BY THE PRIVATE SECTOR
Barbara BŁASZCZAK1, Iwona BŁASZCZAK2, Włodzimierz CHOJNACKI3
Publication language: English
Journal article
Transformations No. 4 (119) 2023, Publication date: 29 December 2023
Keywords: cultural heritage, tax incentives, tax relief, public-private partnership
Abstract The aim of this paper is to evaluate the role of tax incentives in the promotion of cultural heritage conservation by the private sector. The protection and maintenance of historic monuments plays a vital role in society since it provides possible economic benefits both for the investors as well as for the citizens. Individual advantages stem from private profits from the effective re-adaptation of national heritage. On the other hand, the restoration of monuments contributes to the rise of social welfare due to their symbolic and spiritual value. During times of recession, the restoration of monuments is frequently neglected by the governments due to the arousal of the expenses associated with more pressing issues. The concept of public-private partnership is considered a remedy to this problematic phenomenon of the shortage of funds for cultural heritage conservation. To encourage private investors to participate in such partnerships, national authorities introduce fiscal measures, such as tax incentives. However, despite the noble objectives that stand behind the introduction of such incentives, they may become a subject of misuse by the wealthiest investors, who would utilize them as a tool to avoid taxation. Therefore, when constructing such tools, it is important to consider the overall circumstances affecting their potential effectiveness. In this paper, we assess the tax policies implemented in several European Union nations to encourage the preservation of cultural assets. The primary concern of the analysis is the evaluation of the newly introduced tax relief on historic monuments in Poland. The goal of this study is to outline the benefits and drawbacks of its framework and regulations and assess whether the new Polish relief potentially fulfils its original purpose of providing incentives for the protection of cultural assets.
PhD Student, University of Warsaw, Poland
ORCID: 0000-0002-6122-5639, PhD Student
E-mail: b.blaszczak2@uw.edu.pl
Faculty of Sociology and Pedagogy, Warsaw University of Life Sciences, Poland
ORCID: 0000-0002-3015-6837
E-mail: iwona_blaszczak@sggw.edu.pl
Faculty of Sociology and Pedagogy, Warsaw University of Life Sciences, Poland
ORCID: 0000-0003-2306-3066
E-mail: wlodzimierz_chojnacki@sggw.edu.pl