Poland To Expand Special Economic Zone System
Tuesday, September 12, 2017
The Polish Government has announced plans to effectively extend the scope of
its Special Economic Zones (SEZ) regime nationwide in an attempt to boost investment.
Presently, there are 14 SEZs in Poland. These offer companies a partial exemption from
corporate income tax depending on the size of the investment or the number of
jobs created. In addition, SEZ companies may also take advantage of exemption
from real estate tax. These incentives are set to expire in 2026.
Current law stipulates that companies must apply for a permit to operate in
an SEZ and enjoy these tax breaks. Under a proposed overhaul of the SEZ permit
system announced recently by the Ministry of Development, a company would be
able to apply for similar tax exemptions irrespective of the location of their
investment in Poland.
However, the qualifying criteria would be more comprehensive under the proposed law, with company
size, the location of the investment, the type of investment, the local unemployment
rate, and the quality of the new jobs created, among other factors, to be taken
Announcing the proposed measure, Mateusz Morawiecki, Deputy Prime Minister
and Minister of Finance and Development, said that tax incentives would be granted
to investors on the basis of an administration decision.
"What we are proposing today is not a minor correction, [but] a real pro-development
breakthrough in Poland's current economic policy," he said. "Each
municipality, regardless of size and character, each kilometer from over 312,000
square kilometers of Poland, can become an attractive investment zone."
It is intended that no new SEZ permits will be issued after the proposed law
becomes effective. However, permits issued prior to this date would remain valid