A permit issued by a particular SEZ to a foreign investor constitutes the basis for operating business within the Special Economic Zone. Following a recent change in regulations, the permit to conduct business in a Special Economic Zone has been replaced by the so-called decision on support. Such decision contains primarily information on the types of activities which will be pursued by the foreign investor in the SEZ and which will be subject to tax exemption. It should be noted that not every type of business activity may be exempt from income tax or real estate tax. The reliefs in question are applicable only in the case of selected branches. The investor is recommended to consult our advisors prior to commencing investment in Poland. Even if a particular business activity is not eligible for tax exemptions, it is still possible to run such a business under generally applicable principles and legal regulations which are binding for all entrepreneurs in Poland.
Income earned from business activity conducted in the Special Economic Zone within the scope of the obtained permit may be subject to a relevant tax exemption, depending on the form in which the activity is conducted. A tax exemption can be obtained both by companies (on the basis of regulations on corporate income tax) and natural persons (on the basis of principles defined in the regulations on personal income tax).
The tax exemption in question constitutes the so-called state aid whose amount is subject to certain limitations. The larger the investment project, the higher the risk of exceeding the threshold specified in the regulations. Only the types of economic activity specified by the investor in the application and then indicated in the decision on support are subject to the tax exemption. In other words, if an entrepreneur earns income from economic activity in a SEZ which was not specified in the decision on support, such income is not eligible for exemption and is settled according to generally applicable rules. It is possible to simultaneously conduct business activity within a SEZ and other activity which will be settled according to standard tax rates.
The permit to conduct business in a special economic zone (currently referred to as a decision to support investments) also contains information on minimum investment outlays which the investor undertakes to incur in connection with the investments in Poland. The SEZ permit also specifies the number of employees that the investor is obliged to employ within a specified period of time. Construction of a plant, purchase of machinery or equipment and hiring employees is just the first stage of the investment. Legal regulations require the investor to meet additional conditions. In order to obtain tax reliefs for the investment, e.g. it is also necessary to maintain the level of fixed assets purchased by the investor for a specified period of time and to maintain a specified level of employment. The above is primarily aimed at rewarding only committed investors who are serious about running their business in Poland. Given the number of requirements imposed by law, before starting a business in Poland, we recommend contacting our team to discuss the details of your investment.
Our assistance consists in obtaining a permit to conduct business within a special economic zone. We also help the investor select particular indicators, including types of business activity that may be conducted in the SEZ.