Doing Business in Poland: Special Economic Zones

www.rsmi.pl
Legal basis for the operation of SEZs
Currently there are 14 Special Economic Zones (SEZs) in Poland. While commencing activities within a SEZ an investor may take
advantage of the following benefits:
1. Tax exemption (CIT or PIT);
2. A plot of land (fully prepared for investments) at a competitive price;
3. Free-of-charge assistance in fulfilment of formalities related to the investment;
4. Real estate tax exemption (within certain municipalities).
The establishment of Special Economic Zones in Poland is subject to the following regulations:
1. The Act on Special Economic Zones of 20 October 1994;
2. The Council of Ministers regulation of 10 December 2008 on state aid granted to investors operating on the basis of a permit to conduct
business activity in special economic zones;
3. The Council of Ministers regulation of 10 December 2008 defining criteria for including certain land in a special economic zone;
4. The Commission Regulation (EC) No. 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the Common Market in
application of Articles 87 and 88 of the Treaty (valid until 30 June 2014);
5. Regulations concerning specific SEZs.
RSM Poland KZWS
SPECIAL ECONOMIC ZONES
Legal basis
Qualified costs
State aid
Tax exemption
Advantages and
effects of SEZ
Września Wałbrzyska SEZ
Euro-Park
Mielec SEZ
Selected investors
Qualified costs
Qualified costs are the costs incurred during the validity of a permit related to a new investment in a SEZ and include the following:
1. Purchase or generation, with own means, of fixed assets or repayment of the value of fixed assets stipulated in the lease agreement or another
similar agreement;
2. Extension or improvement of the existing fixed assets;
3. Purchase of intangible assets (provided that additional conditions are met);
4. Expenditures, appropriated as the initial value of fixed assets or intangible assets, actually incurred after the day of obtaining the permit.
The costs related to the purchase of assets other than land, buildings and structures, covered by lease or usufructuary lease, are taken into
account only in case the lease or usufructuary lease has the form of a financial lease and covers the obligation to purchase assets as of the lapse
of the period of lease or usufructuary lease.
The fixed assets purchased by an entrepreneur other than a small or medium-sized enterprise should be new.
The minimum amount of the costs of a new investment enabling eligibility to take advantage of the state aid in SEZs is min. EUR 100,000.
RSM Poland KZWS
SPECIAL ECONOMIC ZONES
Legal basis
Qualified costs
State aid
Tax exemption
Advantages and
effects of SEZ
Września Wałbrzyska SEZ
Euro-Park
Mielec SEZ
Selected investors
The amount of state aid
For small and medium-sized enterprises the amount of state aid shall be
increased by 10 % and 20 %, respectively.
In relation to the extension of the period of operation of the Polish zones to the
end of December 2026, the prospects for the completion of new projects in the
area of SEZs by investors have significantly improved. Over 6,000 hectares await
development by investors. Despite that, the first half of 2014 was the last moment
for investors to lodge applications for a permit to operate within SEZs subject to
more favourable conditions. From 1 July 2014 the European Commission has
changed the conditions for granting state aid within the whole EU, therefore the
concentration of the support for the investors shall be decreased.
RSM Poland KZWS
SPECIAL ECONOMIC ZONES
Legal basis
Qualified costs
State aid
Tax exemption
Advantages and
effects of SEZ
Września Wałbrzyska SEZ
Euro-Park
Mielec SEZ
Selected investors
Tax exemption bases
Costs of new investments
Conditions for
large enterprises
Conditions for
small and
medium-sized
enterprises
Amount of
state aid




Conducting business activities for the period of at least 5 years.
Maintaining ownership of the assets to which the investment
expenditures were related for the period of 5 years from the
date of entering into the register of fixed assets and intangible
assets.
Conducting business activities for the period of at least 3 years.
Maintaining ownership of the assets to which the investment
expenditures were related for the period of 3 years from the
date of entering into the register of fixed assets and intangible
assets.
The product of the maximum amount of aid for a given area and the
qualified costs of investment.
Creation of new jobs
Conditions for large
enterprises
The obligation to maintain new jobs for the period of at
least 5 years.
Conditions for small
and medium-sized
enterprises
The obligation to maintain new jobs for the period of at
least 3 years.
Amount of state aid
The product of the maximum intensity of aid and
two-year gross costs of remuneration of new employees increased by any and all mandatory payments related to the employment thereof.
RSM Poland KZWS
SPECIAL ECONOMIC ZONES
Legal basis
Qualified costs
State aid
Tax exemption
Advantages and
effects of SEZ
Września Wałbrzyska SEZ
Euro-Park
Mielec SEZ
Selected investors
Local tax exemptions
In addition to the income tax exemption, the additional incentive to commence operations within the special economic zone may be the real estate tax
exemption.
From the point of view of an entrepreneur commencing a new investment the principal advantage of such form of support is the quick result, i.e.
annual savings due to non-payment of the tax.
The possibility of taking advantage by the zone entrepreneurs of the real estate tax exemption depends, first of all, on the decision of the municipal
council of the municipality in which the zone exists. Since a single economic zone may cover several municipalities, certain competition is possible
among the local governments wishing to promote investments in their area.
The state aid in the form of the real estate tax exemption is particularly attractive for entrepreneurs who are not able to use the amount of aid granted
thereto under the income tax exemption. However, in the case of those entrepreneurs earning high income it may appear that they will not be able to
take full advantage of the income tax exemption due to taking advantage of the aid in the form of the real property tax exemption. The aid in both of
the said forms is, in principle, subject to accumulation and in total it may not exceed the established threshold of the maximum concentration of the
aid for the qualified costs of a given investment. Furthermore, other forms of state aid are also subject to accumulation, e.g. the aid from the
European Union budget.
RSM Poland KZWS
SPECIAL ECONOMIC ZONES
Legal basis
Qualified costs
State aid
Tax exemption
Advantages and
effects of SEZ
Września Wałbrzyska SEZ
Euro-Park
Mielec SEZ
Selected investors
Advantages resulting from operations within SEZs
1. The possibility to apply for a permit to operate within the zone at any time;
High rating of the Polish SEZs in the world
2. No competition procedure (tender or negotiations);
3. A relatively short period of considering applications for granting a zone permit (30 - 70 days);
It should be noted that 5 out of 14 Polish SEZs are included in
the list of the international ranking of 50 best special economic
zones in the world, the said ranking having been prepared by
fDi Magazine of the Financial Times. The best results were
achieved by Katowicka SEZ, which was ranked as the 2nd in
Europe and 11th in the world.
4. Clear criteria for granting support;
5. The possibility of combining other forms of state aid;
6. Guaranteed fixed level of income tax exemption;
7. The lack of necessity to meet numerous formal requirements, which increase the costs
of investment;
8. Exemption granted for a long period;
9. The possibility of obtaining multiple permits to conduct various business activities in many zones;
10. Measurable financial advantages resulting from the obtaining of a permit as compared
The other zones, which received distinctions in the ranking,
were the following: Łódzka SEZ, Wałbrzyska SEZ, Pomorska
SEZ and Starachowicka SEZ. The European zones differ from
the other zones by high quality infrastructure and developed
transportation network.
to the investment expenditures incurred;
11. Simplified administrative procedures;
12. Access to the developed infrastructure.
RSM Poland KZWS
SPECIAL ECONOMIC ZONES
Legal basis
Qualified costs
State aid
Tax exemption
Advantages and
effects of SEZ
Września Wałbrzyska SEZ
Euro-Park
Mielec SEZ
Selected investors
Effects of the operation of all the 14 SEZs in Poland
On 31 December 2013 the special economic zones covered areas located in 151 towns and
217 municipalities of a total area of 16 204 ha. In 2013, 253 permits to conduct business
activities in special economic zones were issued and this amount constitutes almost 15% of
the total number of valid permits. As compared to 2012 the number of the permits granted
was higher by 51.5%. The largest number of permits was issued in the following zones:
Krakowska SEZ (32), Katowicka SEZ (28), Wałbrzyska SEZ (27), Mielecka SEZ (25) and
Pomorska SEZ (23 permits). Only in one zone the number of the permits granted did not
exceed 10 (Starachowicka ZES - 8 permits). The largest numbers of new jobs were created
in Krakowska SEZ (7200), Wałbrzyska SEZ (3800) and Łódzka SEZ (3000). At the end of
2013 almost 74.2% of the value of the capital invested in the zones came from the following
six countries: Poland, Germany, the USA, the Netherlands, Italy and Japan. In the previous
years the investors from the said countries were also leading investors. Their share in the
total value of investment expenditures in the years 2009 – 2012 was between 69% and 75%.
Similarly to the previous years the following zones had the largest share in the total amount
of the investment: Katowicka SEZ – 22.7%, Wałbrzyska SEZ – 17.5% and Łódzka SEZ –
11.6%, but Słupska SEZ had the smallest share of 1.3%.
The
number
of valid
permits
Value of the realised
investments in
million PLN
New jobs
Maintained
jobs
1728
95 590
200 097
71 792
Source: Information on the execution of the Act on Special Economic Zones at the end of March 2014,
The Ministry of the Economy.
RSM Poland KZWS
SPECIAL ECONOMIC ZONES
Legal basis
Qualified costs
State aid
Tax exemption
Advantages and
effects of SEZ
Września Wałbrzyska SEZ
Euro-Park
Mielec SEZ
Selected investors
Wałbrzyska “INVEST-PARK” Special Economic Zone - subzone in Września
Wałbrzyska “INVEST-PARK” Special Economic Zone is one of the largest and the
most dynamically developing industrial zones in Poland. It was established in 1997. It
is ranked among the top industrial zones in Europe (the 4th place) and in the world
(the 22nd place).
The advantages of the zone are first of all the location: (close to Germany and
Poland’s southern border with the Czech Republic), vicinity of large university centres
(Wrocław—630,000 inhabitants, Poznań—550,000 inhabitants), good communication
infrastructure (A2, A4 motorways, S8, S3 express roads and also S5 in the future).
Well-developed local technical infrastructure, extensive offer of real properties and
high quality investor services are also significant. The zone guarantees its investors
assistance in the completion of the investment process and establishing relations with
the representatives of the local business.
Thus far, in INVEST-PARK SEZ the investors have invested PLN 16.7 billion, creating
37,000 jobs. The dominant industries are the automotive, household appliances and
food industries.
The whole INVEST-PARK SEZ is divided into 44 subzones. One of the subzones is located
on the territory of Września where a new mega investment of Volkswagen group is to be
completed.
As already mentioned the new Volkswagen plant will be located in Września, 45 km east
of Poznań. The location ensures very good communication with the largest Polish cities
(Poznań, Warsaw) and Poland’s border with Germany due to the existing railway network and
A2 motorway.
60,000 Volkswagen Crafter trucks will be manufactured annually at the plant. The production
of the cars will commence in 2016. As a result of the completion of the said investment 2.3
thousand new jobs are to be created.
The new plant of Volkswagen Group will be located on a plot of an area of 220 ha. At the
same time the area of the special economic zone will be enlarged by ca 300 ha.
Simultaneously, there will be approx. 80 ha of land located in the special economic zone,
which may be developed by new investors.
RSM Poland KZWS
SPECIAL ECONOMIC ZONES
Legal basis
Qualified costs
State aid
Tax exemption
Advantages and
effects of SEZ
Września Wałbrzyska SEZ
Euro-Park
Mielec SEZ
Selected investors
EURO-PARK Mielec as an example of a successful SEZ
Selected large investors:
EURO-PARK Mielec SEZ is located mainly in the south-eastern part of Poland. It is the oldest special
economic zone in Poland; it was created in 1995. Since its establishment, PLN 6.2 billion in total have been
invested and 23.8 thousand people have been employed. Thus far ca 300 permits to conduct business
activities within the zone have been issued.
In accordance with the recent plans EURO-PARK SEZ is to be extended by an additional 110 ha. In
accordance with the estimates of Agencja Rozwoju Przemysłu [Industrial Development Agency] (which
manages the economic zone) it is to result in the creation of 5.7 thousand new jobs within the coming 10
years. The planned investment expenditures should amount to PLN 1.5 billion. The attractive areas located
near Rzeszów (the capital city of Podkarpackie province) and the land located in Lubelskie province are to be
incorporated in the zone.
The plots appropriated for investments shall be fully serviced and shall be provided with the necessary
infrastructure. 23 ha (near Rzeszów) have already been pre-reserved by investors who undertook to employ
over 1,000 people. The zone particularly expects representatives of the aircraft and automotive industries,
which are already present in the zone.
RSM Poland KZWS
SPECIAL ECONOMIC ZONES
Legal basis
Qualified costs
State aid
Tax exemption
Advantages and
effects of SEZ
Września Wałbrzyska SEZ
Euro-Park
Mielec SEZ
Selected investors
The selected investors from SEZ: new permits to conduct activities (2012-2014)
In March 2014, the Volkswagen Group informed about its intention to build another plant that will be located near Poznan, within Walbrzych Special
Economic Zone. The whole expenditures will amount to EUR 800m and so therefore it will be one of the biggest greenfield investments ever
located in Poland. It is expected to result in 2.3k new workplaces. The factory is supposed to produce about 60k Volkswagen Crafters annually. The
manufacturing will start in 2016. The area of the future plant will be about 220 hectares. At the same time, the area of the special economic zone
will be enlarged by about 300 ha. Therefore, there will be about 80 hectares in the special economic zone left for new investors.
2012-2013: selected new permits
Ulrich Polska: Starachowicka SEZ
Dr Schneider Automotive: Kamieniogórska SEZ
Magna Car Top Systems Poland: Katowicka SEZ
Saint-Gobain Sekurit: Katowicka SEZ
Valeo Electric and Electronic Systems: Katowicka SEZ
General Motors Manufacturing Poland: Katowicka SEZ
Scania Polska: Legnicka SEZ
Magna Formpol: Katowicka SEZ
BASF Polska: Legnicka SEZ
Viessman Technika Grzewcza: Legnicka SEZ
Fuji Seal Poland: Łódzka SEZ
International Paper: Pomorska SEZ
Nord Ost KARTON: Suwalska SEZ
RSM Poland KZWS
SPECIAL ECONOMIC ZONES
Legal basis
Qualified costs
State aid
Tax exemption
Advantages and
effects of SEZ
Września Wałbrzyska SEZ
Euro-Park
Mielec SEZ
Selected investors
Chosen investors in SEZ: other major players
General Motors Manufacturing: Katowicka SEZ (USA, automotive)
Lafarge: Pomorska SEZ (France, concrete industry)
Fiat GM PowerTrain: Katowicka SEZ (Italy, automotive)
Kronospan Polska: Slupska SEZ (Cyprus, industy)
Volkswagen Poznań S.A.: Kostrzynsko-Slubicka SEZ (Germany, automotive)
KAPENA: Slupska SEZ (Italy, automotive industry)
HJ Heinz Polska: Kostrzynsko-Słubicka SEZ (Germany, food industry)
Air Liquid: Starachowicka SEZ (France, chemical industry)
Shell Polska: Krakowska SEZ (GB/ Netherlands, BPO)
Pfleiderer MDF: Suwalska SEZ (Germany, industry)
Man Trucks: Krakowska SEZ (Germany, automotive)
Rockwool: Suwalska SEZ (Denmark, construction industry)
Winkelmann: Legnicka SEZ (Germany, steel industry)
LG Electronics: Tarnobrzeska SEZ (Korea, electronics)
Dell Products: Lodzka SEZ (USA, electronics)
Toshiba Television: Tarnobrzeska SEZ (Japan, electronics)
Gillette Poland International: Lodzka SEZ (USA, shaving tools)
Toyota Motor Manufacturing Poland: Walbrzyska SEZ (Japan, automotive)
Procter & Gamble: Lodzka SEZ (USA, cosmetics)
Colgate-Palmolive Manufacturing: Walbrzyska SEZ (Switzerland, chemical industry)
Goodrich Aerospace: Milecka SEZ (USA, aerospace)
Michelin Polska: Warminsko-Mazurska SEZ (France, tire industry)
Husqvarna Poland: Mielecka SEZ (Sweden, electric tools)
Bridgestone: Pomorska SEZ (Japan, tire industry)
RSM Poland KZWS
SPECIAL ECONOMIC ZONES
Legal basis
Qualified costs
State aid
Tax exemption
Advantages and
effects of SEZ
Września Wałbrzyska SEZ
Euro-Park
Mielec SEZ
Selected investors
Should you have any questions, we remain at your disposal
RSM Poland KZWS
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F +48 61 8515 786
piotr.liss@rsmi.pl
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RSM Poland KZWS
SPECIAL ECONOMIC ZONES
Legal basis
Qualified costs
State aid
Tax exemption
Advantages and
effects of SEZ
Września Wałbrzyska SEZ
Euro-Park
Mielec SEZ
Selected investors