The most important changes in the functioning of Special Economic Zones

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.

After more than 20 years of operation of special economic zones, the Act of May 10^th, 2018, introduced changes to the income tax exemption instrument (CIT or PIT) in order to adapt the regulations to the current market situation and to the needs of entrepreneurs. The amendment makes it possible to take advantage of the tax exemption throughout Poland by companies implementing new investments both in public and private areas. At the same time, the existing permits to conduct business activity in special economic zones (SEZ) remain in force until the end of 2026. In addition, in the amendment of July 31^st, 2019, support was also allowed for investments in the areas of undeveloped mineral deposits, thus significantly expanding the offer of locations where entrepreneurs can obtain tax exemptions.

(source: https://www.paih.gov.pl/strefa_inwestora/Polska_Strefa_Inwestycji#3)

• Tax incentives available throughout Poland, in areas where you can conduct business. Companies do not have to move to the Zones and invest away from their current area of ​​operation. The long and burdening procedure of changing SEZ borders has been abolished.
• The conditions for obtaining a tax exemption depend on the size of the company and the unemployment rate in a given poviat.
• Required investment outlays adapted to the capabilities of companies, depending on whether they are micro, small or medium-sized enterprises. The economic and social situation in a given area is also taken into account, including the rule that the higher the unemployment rate in a poviat, the lower the required investment outlays.
• Investments in medium-sized cities losing economic and social functions are rewarded. Other regions with high unemployment can also count on preferences.
• The projects that are rewarded in the first place are those that have an impact on the competitiveness and innovation of regional economies, and consequently on the economic development of Poland.
• The decision on preferences is issued for a specified period of time - typically from 10 to 15 years. However, the higher the state aid in the region allowed by the European Union, the longer the possible exemption period. The new act did not introduce any changes to the acquired rights for investments that already operate in the SEZ.
• Companies that manage the zones play a new role in attracting investment. They are the main point of contact in the region for investor service, as well as the regional coordinator of granting public aid in the area of ​​the instrument of tax exemptions and government subsidies.

(source: https://www.gov.pl/web/rozwoj-praca-technologia/polska-strefa-inwestycji)