After the political transformation in 1989 the re-establishment of the capital market began in Poland. Since its intensive and stormy beginning, the WSE has become a sensitive element of Poland's economic system. The Warsaw Stock Exchange is organised as a non-profit joint stock company with the State Treasury as the major shareholder. Its share capital amounts to PLN 6,000,000, divided into 60,000 registered shares. In December 1997 the shares of WSE were owned by 53 banks and brokerage houses, as well as by the State Treasury.
Foreign investors are generally subject to the same rules and regulations as Polish investors.
Until the end of 1995, capital gains made by investors on the WSE were relieved from tax obligation. Currently, natural persons are still exempt from capital gain tax, as well as foreign legal investors from countries that have concluded intergovernmental treaties on the avoidance of double taxation, or agreements on reciprocity treatment. Such treaties are signed with the majority of European countries and other developed countries outside Europe. For remaining legal persons, capital gain tax amounts to 40 per cent. Dividends are subject to a withholding tax of 20 per cent.