The most attractive areas for investment
10.03.2010
Special Economic Zones
Special Economic Zones (Specjalne Strefy Ekonomiczne, or SEZs) are designated areas in selected regions of Poland intended for the purpose of conducting business activities under preferential conditions.
14 special economic zones operating in Poland
The purpose of creating such privileged areas is to accelerate the economic development of particular regions by enhancing their attractiveness for new investment. At present, there are 14 special economic zones operating in Poland – one is in Małopolska (Kraków Technology Park). The zones differ in size, location, and environment, as well as in terms of development conditions or road, technical and telecommunications infrastructure. Each of the zones is managed by management authorities in the form of a commercial company controlled by the State Treasury or provincial local government. SEZs were established in 1996- 1998. Initially, this was for a term of 20 years, however, this has since been extended until the end of 2020. The principle underlying the zones’ operation is the possibility of income tax exemption for enterprises undertaking new investments in SEZ areas. The infrastructure that is prepared for investment purposes in the zones may also serve as additional encouragement for the enterprises.
The basic condition for tax exemptions in SEZs is that the enterprise must make a new investment incurring a specific amount of investment expenditure and creating new positions. The amount of tax exemption is based on the value of the investment expenditure incurred by the enterprise or on two years’ labour costs of the staff employed by the enterprise in relation to the investment made.
public support
The limit of public support (including tax exemption) is calculated as a percentage of the investment expenditure (or two years worth of labour costs, should the latter be higher). Depending on the region, the limit can vary from 30% to 50%. In the case of small- and mediumsized companies, the percentage may be increased by 20% or 10%, respectively. The regulations establishing the SEZs include specific principles regarding the definition of a new investment, the creation of new positions and the conditions of the qualifying costs in order to calculate the support limit. It is, however, worth emphasising that the minimum value of an investment eligible for public support in SEZ is EUR 100,000.
The formal basis for the tax exemptions granted on account of carrying out business activities in SEZ is the receipt of a permit to conduct business activities in SEZ. Such permits are granted by the Minister of Economy through the entities managing a particular Zone.
Kraków Technology Park: more
the article from Doing Business - publication prepared by: PriceWaterhouseCoopers in the cooperation with MARR