WEEKLY INTELLIGENCE REPORT
BY MIDA COLOGNE (6 FEBRUARAY – 10 FEBRUARY 2006)
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Tax incentives for Special Economic Zones ( SEZ ) in Poland A Special Economic Zone (SEZ) is a designated area in
which manufacturing or distribution activities can be conducted on preferential terms. The purpose of SEZs is to support regional development. There are 14 SEZs in Poland. Corporate income tax exemption, related to income from
activities conducted in SEZs under the permit, is considered to be regional aid granted under the Act on SEZs. Amount of admissible state aid- The admissible amount of
aid cannot exceed the maximum intensity of aid for a given region, as stipulated in the state aid regulations. The intensity indicates the allowable share of regional aid in costs (investment outlays).The intensity of aid allowed on the majority of Poland’s territory is 50%. The 50% intensity means that when investing in a zone,
entrepreneurs may obtain aid not exceeding 50% of the investment outlays. For small and medium enterprises, as defined by the Economic Activity Law, the index is increased by 15 percentage points (to 65%, 55% and 45% respectively). Small enterprise - shall mean an entrepreneur who in at least one of the two recent financial years:
had an average annual employment of less than 50, and showed an annual net turnover from sales of goods, products and services and from financial operations of no more than an
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equivalent of 10 million Euro, or a balance-sheet assets total, as at the end of either of these two years, of no more than an equivalent of 10 million Euro.
Medium-size enterprise - shall mean an entrepreneur who in at least one of the two recent financial years:
had an average annual employment of less than 250, and showed an annual net turnover from sales of goods, products and services and from financial operations of no more than an equivalent of 50 million Euro, or a balancesheet assets total, as at the end of either of these two years, of no more than an equivalent of 43 million Euro.
Forms of regional aid
SEZ-based enterprises can take advantage of two forms of regional aid:
Regional aid to support new investment projects Regional aid for creating new jobs
Regional aid for investment projects
The amount of regional aid for new investment projects depends on the amount, nature and structure of the investment outlay of a given business. The qualifying costs include the following types of expenditure:
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Purchase of land Expenditure on buildings and structures Expenditure related to equipment for facilities with tangible assets (machinery and related devices, tools and instruments, equipment for office work, technical infrastructure)
Regional aid for employment
The amount of regional aid allocated to job creation is calculated on the basis of two years’ labour costs of newly-employed staff borne by the entrepreneur, consisting of gross payroll costs and all mandatory charges related to their employment.
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