Poland

Incentives for Special Economic Zones (SEZs)

R&D schemes have been supported by the Polish government since the regime was instigated on 1 January 2006. Although the scheme is constantly being developed, positive strides have been undertaken to establish Poland as a supportive R&D environment. R&D direct grants and tax incentives have assisted in constructing Poland as an attractive location for business competition and entrepreneurial investment. Currently available incentives in Poland include tax exemptions, tax deductions and cash grants.

Description of Incentive

A Special Economic Zone (SEZ) is a detached, unoccupied fragment of the country’s territory where business activity may be instigated under favoured conditions defined in the Act on Special Economic Zones of 20 October 1994. Currently, Poland has 14 operating SEZs and permission to start trading in an SEZ is approved by the management board of each zone.

Corporate Income Tax (CIT) exemptions are granted on the basis of a permit for running a business in the SEZ and these are regulated by the Ministry of Economy. The investor may employ the CIT exemption until the conclusion of the SEZ existence, which presently extends to 2026. Exemptions must be in relation to income produced on business activities as detailed by the permit. The maximum value of R&D aid is stopped at 30-50% – however, this is reliant on location, eligible investment costs, or two-year employment costs. Pre-approval must be obtained for the SEZ incentive and is determined on a case by case basis.

Eligibility Requirements

The following capital expenditure may be considered as eligible expenses:

• Land purchases;
• Construction works and materials;
• Fixed and intangible assets;
• Lease of land and buildings

Main conditions of entry for SEZ are:

• new investment must be executed;
• SEZ regulations can’t exlucde the subject of the business activity that is planned to be performed;;
• Incurred investment costs great than €100,000;
• SEZ authorities possess available land in a given location.

Other Considerations

Every year entrepreneurs may submit financial statements to the Ministry of Economy. These statements detail the reports and descriptions of the R&D activities from the past year and are coupled with a declaration confirming that there are no outstanding tax or social security liabilities.

Services

Swanson Reed offers the following services:

• Advice on tax preparation relevant to claiming the R&D tax credits incentive
• Preparation of documents relating to filing and substantiating a R&D taxation claim
• R&D tax advice and consultations
• R&D tax claim planning and preparation

For a full range of services in relation to the credit, please click here.