New investment possibilities in Special Economic Zones

A new chapter is opening in the history of special economic zones in Poland. We now have twelve years to implement a new set of regulations and principles for their functioning. Putting the new regulations into practice means that the amount of public funding will be decreased by 15 percentage points. For example, where businesses have been legible for an exemption of 50 pct of the value of their investment expenditure, now they will be legible for a 35 pct exemption. This means that provided an investor declares plans to invest PLN 10 mln of qualified expenditure, if they generate revenue in the future they will not pay PLN 3.5 mln of the tax on it. This is still a large reduction when contrasted with the tax bills of ordinary enterprises today and, after all, it is important for the investment to be made properly and securely – so that its profitability leads to the employment of new staff and so that it can grow and reinvestment in the business can be made. For sceptics of this form of support, it should be pointed out that this is still probably the easiest and the most efficient mechanism for leaving the job of reinvestment to the businesses themselves compared to the other forms of support available in the Poland. The new regulations involve changes to the assessment principles of the enterprises proposed in investors’ offers. A system of entrepreneur monitoring is also likely to be set up for businesses carrying out projects inside and outside special zones as well as those engaged in international projects. This will force the zones to clearly define the provisions regulating the obligations of each client of the zone. As a consequence of this, the wording of the permit is set to take on a more detailed form. The issuing of the new permits is expected to begin in the fourth quarter of the year, but the launch date could be put back if the economy and finance ministries feel the need to make further amendments. In terms of project implementation, the near future is a good time to start the preparations and planning for the location of a new direct investment. Special zone permit procedures require a few weeks of preparations on the zone’s part and, first of all, on the investor’s part. Furthermore, the choice of location could require the fulfilment of procedures involving announcements and registers. So it is highly worthwhile becoming familiar with how these new investment procedures are being implemented today to ensure a well-considered choice for the location and development of your company.