Investments > Special Economic Zones > Introduction

Introduction

Investment incentives

At present, investors may enjoy the following investment reliefs:

• Local property tax relief negotiable with local authorities. Strategic investors may obtain complete or partial reliefs, by way of negotiation, on property tax (rates) from their local authorities.

• In-kind-contribution to equity - free of import duty. Firms are exempted from customs duties on machinery and equipment on condition that this is registered as a contribution in kind to the company's capital assets.

• Loss carry forward - for 5 subsequent years

Losses incurred in a given tax year may be carried forward and deducted in equal instalments in the next five years.

• Accelerated depreciation of assets

Companies may, if they so wish, depreciate their fixed assets at accelerated rates in the following circumstances:

• in exploiting their fixed assets in difficult conditions (as defined by the law)

• in regions of structural unemployment where the maximum depreciation coefficient may be trebled

• in Special Economic Zones, where the maximum depreciation coefficients may be quadrupled.

Subsidised job creation for unemployed persons

It is possible to obtain partial refund of costs in creating new work places for unemployed persons. Local authorities may refund 50% of the cost of training and employment of unemployed persons.

• Full tax exemption in Special Economic Zones were established through the Polish parliamentary legislation, in various regions of Poland, in specifically designated zones.

    Currently there are 13 Special Economic Zones and one technological park in Poland. All these zones have been set up with 20 year life spans, and will expire in the 2015-17 period. The exception is the technological park in Kraków which only has a 12 year life span, and will expire at the end of 2009.

Special Economic Zones in Poland

Source: PAIZ

    The new administrative structure of Poland was enacted on the first of January, 1999. Its result is a three level system of territorial administration (voivodships):

•     voivodship (województwo)

Poland is subdivided into 16 voivodships:

The voivodship authorities consist of:

• (Sejmik) the voivodship legislative body elected in the local elections;
• the executive body of the voivodships is Marszałek, appointed by the Sejmik.

The above named bodies have the following main responsibilities:

• the economic development of the voivodship;
• public services of the highest calibre _ higher schools, specialised health care services, and cultural institutions;
• create conditions favourable to competition for foreign investment, particularly in the conditions of an imminent European Union membership.

The legality of these bodies' activities is under the supervisory of the voivodship's governor (wojewoda), appointed by Poland's prime-minister

• districts (powiaty)

There are 308 powiaty, and 65 cities legally established as powiaty.

Powiaty's responsibilities include:

• public safety;
• fire safety;
• anti-unemployment initiatives;
• construction and maintenance of inter-powiaty roads;
• issuing of passports;
• issuing of the Polish citizenship.

• community (gminas)

  There are 2489 gminas in Poland.