Income tax exemption

The Act of 10 May 2018 gives companies the opportunity to benefit from an income tax exemption when implementing new investments throughout Poland.

Any company operating in the area managed by a given authority may apply for a tax exemption if its investment meets the specified qualitative and quantitative criteria. Once these conditions are met, the company receives an administrative decision entitling it to use the income tax exemption.

Who can obtain an income tax exemption?

Entrepreneurs investing in the industrial sector as well as in the business services sector can benefit from the tax exemption. If you decide to develop your project in the area managed by SEZ EURO-PARK MIELEC, you can rely on this support.

What types of investments does the tax exemption cover?

The income tax exemption applies to various types of investment projects. You can obtain it if your company plans, among other things:

establishing a new production plant,
increasing the production capacity of an existing plant,
diversifying production,
a fundamental change in the production process (e.g. robotisation),
acquiring the assets of a plant that has been closed or would have been closed had the purchase not taken place.

Which sectors are excluded from the tax exemption?

Not all types of activity can benefit from the exemption. The following are excluded, among others:

the tobacco and alcohol sector,
the coal and steel sector,
the electricity generation sector,
the trade sector (wholesale and retail),
the catering and hotel services sector,
the transport sector (including transport and rolling stock repair workshops).

What determines the amount of income tax exemption?

The amount of the tax exemption depends on the size of the enterprise. Two criteria are taken into account: annual turnover and the number of employees.

Large enterprises – employing more than 250 people, with annual turnover above EUR 50 million or a total annual balance sheet above EUR 43 million – may benefit from a 50% exemption.
Medium-sized enterprises – employing up to 250 people, with annual turnover of up to EUR 50 million or a total annual balance sheet of up to EUR 43 million – may benefit from a 60% exemption.
Small enterprises – employing up to 50 people, with annual turnover of up to EUR 10 million or a total annual balance sheet of up to EUR 10 million – may benefit from a 70% exemption.
Micro-enterprises – employing up to 10 people, with annual turnover of up to EUR 2 million or a total annual balance sheet of up to EUR 2 million – may benefit from a 70% exemption.

How to obtain an income tax exemption?

To benefit from the income tax exemption, before starting the investment you must contact SEZ EURO-PARK MIELEC and submit an application for a Decision on Support.

This is an administrative decision issued to every company that meets the statutory conditions. The document confirms that your investment meets both the qualitative and quantitative requirements.

What are quantitative criteria?

Quantitative criteria define the minimum value of investment outlays declared by the entrepreneur. These values depend on the location, type of investment and size of the company. For example, for a small company investing in the Leżajsk county, the minimum amount of eligible costs is PLN 500,000.

Detailed values for individual counties in the SEZ EURO-PARK MIELEC area can be found in the document:

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Quantitative criteria for counties in the EURO‑PARK MIELEC Special Economic Zone area
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What are qualitative criteria?

Qualitative criteria are divided into criteria for sustainable social and economic development. In the area managed by SEZ EURO-PARK MIELEC, to obtain a Decision on Support, an entrepreneur must commit to meeting at least 4 qualitative criteria, including at least one criterion of each type.

Investment in projects supporting industries consistent with the current national development policy or with the smart specialisations of the voivodeship
Using the potential of human resources
Conducting research and development activities as part of the investment
Creating regional linkages
Membership in a National Key Cluster (industrial investments only)
Having the status of a micro, small or medium-sized enterprise
Robotisation and automation of processes
A new investment in renewable energy sources

Creating high-paying jobs and offering stable employment (service investments only)
Creating specialised jobs and offering stable employment (industrial investments only)
Conducting business activity with low environmental impact
Locating the investment in a medium-sized city losing its socio-economic functions
Supporting the acquisition of education and professional qualifications through cooperation with vocational education
Undertaking activities in the field of employee welfare

When can the tax exemption be used?

The income tax exemption for the implementation of a new investment can be used after the completion date of the investment specified in the Decision on Support. The entrepreneur may use the available tax exemption limit during the validity period of the Decision on Support, which is 15 years from its issue date.

Summary

Remember that:

To benefit from the tax exemption, you must obtain a Decision on Support.
You must submit the application for a Decision on Support before starting the investment.
To obtain a Decision on Support, you must meet the quantitative criteria and at least 4 qualitative criteria.
You have 15 years to use the tax exemption.

Income tax exemption

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