Special Economic Zones

The zones will operate until 2026! There is still a chance to benefit from the tax reliefs which will enable to increase the investment profitability.

Special economic zones constitute administratively separated areas in the territory of the country where investors can conduct business activities basing on preferential conditions.

The goal of the operation of special economic zones is acceleration of the development of regions, by e.g. attracting new investments, export development and creating new jobs.

Initially special economic zones were established for the period of 20 years. In 2008 the period of operation of all the zones was prolonged to 31 December 2020. By way of the same amendment of the Act on Special Economic Zones, the area limit of all the Polish zones was increased once again (from 12 thousand to 20 thousand ha). It also became possible (having satisfied the conditions specified in art. 5 of the Act cited) to establish a special economic zone on private grounds, which increased the attractiveness of investing in special economic zones and accelerated their territorial development.

At present there are 14 special economic zones functioning in Poland. The oldest zone is the special economic zone EURO-PARK MIELEC, established in 1995, and the largest zones are the Katowice Special Economic Zone and the Wałbrzych Special Economic Zone.

The condition to be satisfied in order to benefit from public aid in a special economic zone is obtaining a permit to operate in the special economic zone, issued by a company which administers the zone on behalf of the Minister of Economy. The permit specifies e.g. the object of operation, the minimum rate of employment and the minimum level of investment expenditures. By 31 March 2012 1,482 valid permits to operate in special economic zones were issued. Within the zones Polish and foreign companies invest, following the same principles.

Not all entrepreneurs can obtain a permit to operate in a special economic zone – it cannot be issued for business activities in the scope of e.g. production of explosives, tobacco products, engine fuels processing, production, bottling and processing liquors and spirit intended for other purposes than the production of biocomponents, gaming industry centres, as well as services relating to waste disposal and treatment.

The minimum value of an investment in a special economic zone is 100 thousand euro, and the entrepreneur’s own funds must constitute at least 25% of the total eligible costs of the investment. The condition for benefitting from public aid is: in case of companies  benefitting from the exemption due to the costs of the new investment – incurring the investment outlays declared in the permit and maintaining the investment in the region for a specific period of time.

Prior to Poland’s accession to the European Union the law pertaining to special economic zones was adjusted to the EU law. Public aid granted in special economic zones is subject to principles of granting regional investment support in EU.

Benefits from the operation in a special economic zone:

• Exemption from the income tax (CIT or PIT, depending on the form of business activities  carried out by the entrepreneur) on the income from the activities conducted within the territory of a special economic zone and specified in the permit to the amount from 30 to 50% (index of the public aid intensity  valid for the province where the zone is located; in case of medium and small enterprises it can be increased by 10 and 20 percentage points, respectively) of eligible investment outlays or two-year costs of labour of newly employed employees; the value of the admissible public aid for companies whose costs eligible for public aid exceed 50 M. euro is lower (it is calculated on the basis of a special formula)
• Accessibility of attractive grounds with all utilities and the whole necessary infrastructure
• Possibility to purchase or lease real estates already present in the special economic zone (also inclusive of office space, e.g. for the purposes of shared services, research and development centres or call centres); in some zones it is possible to implement projects in the BTS system (built to suit) and to lease them later on;
• Possibility to benefit also from other investment incentives offered within the special economic zone, inclusive of in particular exemption from the real estate tax (often offered to new investors by municipalities), investment grant from the government, subsidies from the district employment offices and support from EU funds; it should be borne in mind that the public aid adds up, i.e. the total level of support for a company from all the sources must not exceed the aforementioned 30-70% of investment outlays
• Administrative support on the part of companies administering special economic zones in legal and organizational matters relating to the investment implementation (utility providers, local authorities, etc.) and the so-called post-investment support.

Within the scope of the consulting services we offer the following to entrepreneurs wishing to extend their production activities falling under the regulation:

• Introduction of the companies to the special economic zone, inclusive of the execution of the procedure of obtaining a permit and negotiating its terms and conditions
• Tax consulting on a current basis for companies operating in a special economic zone – inclusive of audits, current accounting services
• Developing binding interpretations of legal regulations for entrepreneurs operating in special economic zones
• Consulting for investors pertaining to the conditions for granting exemptions from the real estate tax
• Verification and preparation of investment contracts between investors and special economic zones (SEZ)
• Representing investors in negotiations with SEZ
• Preparation of tender documentation for the purposes of tenders and negotiations announced by SEZ and representing investors in these tenders and negotiations
• Representing investors in proceedings before the Minister of Economy pertaining to amendments in permits to conduct activities within SEZ

The condition to be satisfied in order to benefit from public aid in the special economic zone is obtaining a permit to operate in the special economic zone, issued by a company which administers the zone on behalf of the Minister of Economy. The permit specifies e.g. the object of operation, the minimum rate of employment and the minimum level of investment expenditures.

External links

Valid legislative acts pertaining to SEZ in Poland (link to the website of the Ministry of Economy)