Karolina Sieraczek

Attorney at law (Poland)
Senior Associate
Phone: +48 71 60 60 415

The New Investment Support Act of 10 May 2018 was signed by the President on 2 July 2018. Thus, the work on the new act which is entering into force in June has been completed. Initial statements mentioned the effective date in January but the legislative work protracted. 

The work on implementing regulations which detail the criteria for granting the state aid is still pending but the results should be known soon.  

As we informed you earlier, once the new legislation enters into force, investors will not be able to obtain permits under the old rules. The current Special Economic Zones in Poland Act will be applicable until the end of 2026 only with respect to decisions and permits (as regards changes, withdrawal, cancellation or extinguishment) already granted. The old rules will also apply to procedures which are pending as of the date when the new regulations become effective. Any new investments will be governed by the new rules.

The new regulations above all extend the territory on which investment projects can be located and exempt from income tax. Very often the location of the project disqualified it from a zone exemption. The new law meets the expectations of businesses in this respect.   

The decision on the state aid for an investment project will be issued by the minister competent for the economy for a definite period ranging from 10 to 15 years. The exemption period will depend on the investment location – the higher the EU-allowed state aid intensity in the province, the longer the exemption period. Investment projects implemented in the current special economic zones will have priority. Decisions to support such projects will be issued for 15 years. 

To obtain a tax exemption investors will still have to incur certain eligible costs and create a specific number of jobs. Unlike the old rules, the decision on aid will depend on meeting not only quantity criteria, but also quality criteria. 

If you are planning any new investments, we encourage you to contact us to evaluate the chances for obtaining an income tax exemption. We would like to emphasise that the new rules apply to all businesses, including those which are already operating in special economic zones.