Until 2027, most of businesses operating in Polish special economic zones (SEZs) may be exempt from profits tax and real estate tax. There are 14 SEZs located all around Poland, but the SEZ status may be also given to nearly any appointed location.
The level of profits tax exemption is a consequence of either qualifying investment costs or new employment.
The exemption equals from 15% to 50% of investment costs (depending on the location of the SEZ – higher level is in more rural areas), or from 15% to 50% of two-year labour costs of newly employed workers. For small and medium-sized enterprises the investment aid may be increased by 20% and 10%, respectively.
The prime condition to do business in the SEZ is to obtain a special SEZ permit, which defines among others allowed scope of business, minimum investment and/or minimum employment.
Qualifying investment cost is the expenditure incurred after obtaining the SEZ permit for mainly fixed assets (including land), development or modernisation of existing fixed assets or purchase of intangible assets related to the transfer of technology through the acquisition of patent rights, licenses, know-how or non-patented technical knowledge. Rent cost and finance leasing may also qualify as expenditure giving the title to the tax exemption.
The exemption applies only to profits from business defined in the SEZ permit.
The loss incurred from business activity in the SEZ cannot be carried forward.
Disposal of qualifying fixed asset within five years from completion will result with in the loss of the right to tax exemptions.
In 2017, there are approximately 1,700 businesses operating in SEZs in Poland including multinationals, as well as local large and small entrepreneurs.
© 2021 Euromoney Institutional Investor PLC. For help please see our FAQ.