Doubts

The Polish government introduced the so-called Polish Investment Zone (PIZ). This program is an extension of Special Economic Zones - tax reliefs are available for investments in any location in Poland. All of Poland has become one economic zone.

It is doubtful whether the exemption from CIT / PIT applies to:

• the income from the entire plant located in the area indicated in the decision on support, within the subject of activity specified in the decision;
• the income generated only within the investment project, which is the basis for obtaining the decision on support.

In the light of the rulings of the Provincial Administrative Court, the first approach is currently dominant, i.e. exemption from income from the entire plant. On the other hand, the General Interpretation of Minister of Finance, Investments and Development of October 25, 2019, no. DD5.8201.10.2019 indicates that in this respect it is necessary to verify the links between the new investment and the current activity carried out in the plant and, inter alia, depending on the existence of these connections, the scope of the exemption is defined.

(source: https://www2.deloitte.com/pl/pl/pages/tax/articles/Polska-Strefa-Inwestycji-czego-jest-i-jak-sotykac.html)

1. Judgment of the Provincial Administrative Court in Poznań of February 5, 2020, file ref. act I SA / Po 816/19

(https://sip.lex.pl/#/jurisprudence/522877575/1/i-sa-po-816-19-zakres-zwolnienia-z-cit-z-tytulu-nowej-inwestycji-wyrok-wojewodzkiego-sadu ...? keyword = dismissal% 20pit% 20cit% 20 investment zone% 20 & cm = SREST)

The exemption applies to all income earned in the course of the economic activity with which the new investment is closely linked, provided that its subject is specified in the decision on support. The presented manner and scope of application and the provisions of Art. 17 sec. 1 point 34a of the Act on Public Procurement Law and art. 21 sec. 1 point 63b of the Act of 1991 on personal income tax it allows you to use the right to exemption from taxation with income tax of income obtained from new investments generating income independently and independently of existing ones, as well as income from new and existing investments, when these investments are closely related.

2. Judgment of the Provincial Administrative Court in Łódź of March 12, 2020, file ref. no. I SA / Łd 837/19

With art. 17 sec. 1 paragraph 34a and article. 17 sec. 4 u.p.d.o.p. it does not follow that the exemption condition is the achievement of income from a specific investment mentioned in the decision on support. Tax regulations do not provide for the obligation to determine the tax result achieved only under the investment project for which the decision on support was obtained.

(https://sip.lex.pl/#/jurisprudence/522999771/1?directHit=true&directHitQuery=I%20SA~2F%C5%81d%20837~2F19)

3. Judgment of the Provincial Administrative Court in Gliwice of September 3, 2020, file ref. no.I SA/Gl 1228/19

(https://sip.lex.pl/#/jurisprudence/523151775/1/i-sa-gl-1228-19-zakres-zwolnienia-z-cit-z-tytulu-nowej-inwestycji-wyrok-wojewodzkiego-sadu ...? keyword = dismissal% 20pit% 20cit% 20 investment zone% 20 & cm = SREST)

The meaning of the decision on support lies not only in the characteristics of the new investment and in establishing binding conditions (obligations) for the taxpayer in this respect, but also in linking it with the subject of economic activity under which the investment is carried out, which is to be carried out in the area specified in the decision. Consequently, all income earned in the course of the economic activity with which the new investment is strictly inextricably linked is exempt, provided that its subject matter is specified in the support decision.

4. Letter of October 25, 2019, Ministry of Finance, DD5.8201.10.2019

(https://sip.lex.pl/#/guideline/185075766?directHit=true&directHitQuery=DD5.8201.10.2019)

A frequent form of implementing a new investment is an investment carried out on the taxpayer's tangible fixed assets. In such cases, if the realization of a new investment takes place in a way that involves the assets already owned by the taxpayer and if the new investment is an integral and dependent functional element in relation to an already existing set of assets (close links), the tax-exempt income is determined taking into account the property existing before the decision on support is issued. Such a situation is possible only when the method of integrating the new and existing investment, located on the same area, does not allow to determine the income (revenue) only from the new investment, without taking into account the integrated part of the existing investment. In this respect, income cannot be separated due to the strict economic and functional links between the existing and new investment, as such separation would have to be based on methods that the CIT Act and the PIT Act do not provide for the purpose of determining income. However, if there are no close links between the existing and the new investment, the entrepreneur defines the income (revenue) from the new investment as income (revenue) generated independently of the existing investment and only this income (revenue) generated independently of the existing investment is exempt from taxation.