Conditions for obtaining an income tax exemption

 

DECISION ON SUPPORT

Who can receive a decision on support?

Entrepreneurs conducting business activity with the territory of Poland can apply for a decision on support. The size of the enterprise is determinative – support can be granted both to micro-companies and large corporations. The entrepreneur obtains the right to an income tax exemption on the basis of the decision on support, which is issued upon the entrepreneur’s application to
the WSEZ “INVEST-PARK”.

The decision on support is issued for periods of:

• 10 years for investments located in Dolnośląskie and Wielkopolskie provinces,
• 12 years for investments located in Opolskie Province
• 15 years for investments located within the territory of a special economic zone.

The decision on support specifies the following conditions:

• the number of jobs to be generated in connection with the new investment and maintained for a pre-determined period,
• the eligible costs incurred by the entrepreneur within a specified period,
• the date of completion of the new investment, after which the costs incurred by the entrepreneur will no longer be considered as eligible,
• the maximum amount of eligible costs that can be taken into account in determining the maximum amount of state aid,
• quantitative and qualitative criteria that the entrepreneur has undertaken to meet,
• the area where the new investment will be located.

WHAT ACTIVITY IS ELIGIBLE FOR AN INCOME TAX EXEMPTION?

Investment support in the form of an exemption from income tax is granted to carry out the majority of production activities and services related to production.

It is also possible to benefit from this form of support to render other services, including:

• software, hosting and IT consulting,
• repair and maintenance of computers and communications equipment,
• specialist design,
• architectural and engineering services,
• studies and technical analysis,
• consulting on environmental matters,
• head office services and consulting in the area of management,
• call centers,
• accounting and bookkeeping services,
• research and development services,
• financial audit,
• warehousing and storage of goods.

5 STEPS TO OBTAINING THE DECISION ON SUPPORT AND AN INCOME TAX EXEMPTION

• Contact an expert of the WSEZ “INVEST-PARK”:
  Investor Services Department
  tel.: +48 74 664 91 54, +48 74 664 91 79
  e-mail:
• Select a location for the new investment in one of 29counties. Use the WSEZ “INVEST-PARK” map tool
• Verify the project parameters with regard to the qualitative and quantitative criteria specified in the regulations.
• Submit an application for granting the decision on support to the WSEZ “INVEST-PARK”.
• Keep in touch with us:
  Investor Services Department
  tel.: +48 74 664 91 54, +48 74 664 91 79
  e-mail:

THE QUANTITATIVE CRITERION – THE MINIMUM VALUE OF A NEW INVESTMENT

Depending on the unemployment rate in the county where the new investment will be located, an entrepreneur applying for support is obliged to meet the quantitative criterion, which specifies the minimum amount of investment for a given location. The unemployment rate in a given county is compared to the national average. Depending on that average, a large investor is required to invest between PLN 10M to 100M.
For investments carried out in a town deemed to be losing its social and economic functions, and for the neighboring gminas (communes), the minimum amount of the eligible costs of the new investment is PLN 10M.

The base value of the quantitative criterion for a large enterprise is reduced by 95% in cases when the project to conducted from the field of innovative business services or carrying out R&D activities.

In addition, the quantitative criterion is reduced for other enterprises as follows:

• medium-sized enterprises – by 80%,
• small enterprises – by 95%,
• micro-enterprises – by 98%.

The average unemployment rate is calculated in accordance with the most recentdata announced in Monitor Polski – The Official Gazette of the Republic of Poland.

 
QUALITATIVE CRITERIA

In addition to meeting the quantitative criterion, in order to obtain the decision on support, the new investment must meet the following qualitative criteria:

• the criterion of sustainable economic development
  and
• the criterion of sustainable social development.

Sustainable economic development criteria include:

• investment in projects supporting industries that are specified in the current national development policy, in which the Republic of Poland may gain a competitive advantage,
• achieving a specified level of sales outside the territory of the Republic of Poland,
• membership in the Key National Cluster,
• conducting R&D activities,
• having the status of a micro, small or medium-sized enterprise.

QUALITATIVE CRITERIA

In order to meet the qualitative criteria, an entrepreneur must receive a total ofno less than six points for projects in Dolnośląskie and Wielkopolskie provinces, and no less than five points for projects in Opolskie Province; moreover, no less than one point must be received for each qualitative criterion. The regulations precisely define the qualitative criteria for new investments in the services and industrial sectors.

Sustainable social development criteria include:

• creating of specialized and stable jobs in connection with the new investment project,
• conducting business activity with low negative impact on the environment,
• locating the investment in a town deemed to be losing its social and economic functions, in the neighboring gminas (communes), or in counties or cities with county rights in which the unemployment rate is at least 160% of the average national unemployment rate, excluding cities that are seats of the provincial administrator or the provincial assembly,
• supporting the acquisition of vocational and professional qualifications and co-operation with vocational schools,
• undertaking activities in the field of employee care.