• Polish Investment Zone

Why Polish Investment Zone ?

The Polish Investment Zone instrument is a form of tax credit that enables exemption from income tax:

  • after meeting specified conditions,
  • in a specified amount,
  • for a specified period.

On 10 May 2018, an amendment to the Act came into force changed the instruments of income tax exemption and established Polish Investment Zonere replacing the Special Economic Zones.

Now tax exemption is available across the entire territory of Poland, for companies carrying out new investments, on publicly as well as privately owned land.

Currently binding Special Economic Zone permits, already granted to investors within the old SEZs shall remain in force until 2026.

ELIGIBILITY CONDITIONS

  • Investments eligible for support include:
    – establishment of new enterprise
    – increase of the production capacity of an existing enterprise
    – diversification of the production through introduction of products which previously were not manufactured in the enterprise
    – fundamental change in the production process of the existing enterprise
  • Exemption from income tax in the amount of up to 70% of eligible costs are:
    – c    apital expenditures – cost related to purchase, development or modernization of fixed assets (e.g. machines), cost related to the acquisition of intangible assets or
    – 2-year labor costs of newly hired employees
  • The amount of tax relief is determined on the basis of:
    – the amount of eligible expenditures
    – location of the investment
    – status of the enterprise
  • Duration of the income tax exemption is 10, 12 or 15 years (depending on the location of the investment)
  • Need to meet certain quantitative and qualitative criteria
  • Maximum amount of state aid in the form of income tax exemption is determined on the basis of the regional aid map for 2022-2027 (representing the percentage of costs eligible for regional aid)

Regional aid map for 2022-2027

why epsa?

Scope of services under Polish Investment Zone:

  • Consulting on procedures and processes under PSI
  • Dedicated team of experts
  • Verification of the potential of the planned Project in terms of the possibility of obtaining a Support Decision, as a result of which the Contractor will prepare an opinion on the possibility of obtaining Support
  • Verification of expense accounting principles and their inclusion for the purposes of Project Settlement
  • Initial verification of the client’s ability to meet the quantitative and qualitative criteria
  • Support in determining the eligible costs of the planned Project
  • Support in qualifying the Project for the appropriate PKWiU classification
  • If necessary, preparation of an application for official confirmation of the PKWiU classification for a given activity by the Center for Classification and Nomenclature of the Statistical Office in Łódź
  • If necessary, representing the Principal before the Zone
  • Preparation of the application for support with the cooperation of the Client
  • Obtaining a Support Decision
  • If necessary, prepare an application for an individual interpretation
  • Advice and assistance in the allocation of revenues and costs before the start, during implementation and after completion of the Project in the scope of expenses declared in Support Decision
  • Support in Project Settlement