If your company is considering a new investment or is already operating within the Polish Investment Zone (PSI) and Special Economic Zones (SSE) in Poland, Crowe offers extensive support at every stage of your investment operations.
What is the Polish Investment Zone (PSI)?
Introduced in 2018, the Polish Investment Zone (PSI) is a support tool for investors replacing the previous Special Economic Zones (SSE). The PSI offers investors the opportunity to obtain tax concessions when making new investments in Poland. Importantly, this support is available not only to large companies, but also to SMEs. PSI focuses mainly on the industrial and high tech services sector.
Tax reliefs within the Polish Investment Zone
Through the PSI, investors can obtain CIT or PIT exemption for new investment projects in the form of regional investment aid as a percentage of the new investment costs. The amount of public aid depends on the size of an enterprise and the chosen location. In some regions of Poland, up to 70% of the costs incurred can be recovered.
The period of benefiting from the tax relief depends on the location chosen and is 10, 12 or 15 years or until the exemption limit is exhausted. The choice depends on the investor the strategy. It is worth noting that for reinvestment, i.e. investment in existing plants, the costs are reduced by 50%.
Example: Assuming that a medium-sized entrepreneur invests PLN 5 million in new production capacity in the Podkarpackie voivodeship with a state aid intensity of 60%, the entrepreneur can obtain a tax exemption of up to PLN 3 million. This means that for 15 years or until this limit is reached, the entrepreneur will not pay tax on income of nearly PLN 16 million.
Polish Investment Zone and Special Economic Zones - How can we help?
We help companies to effectively take advantage of the available tax relief under the PSI and SSE:
Our support includes, inter alia, services such as:
- Investment analysis
An assessment of various ways of benefiting from tax relief under the PSI. - Tax advisory services
Support in company registration and ongoing tax support, especially for foreign investors. - Tax interpretations in Poland
Keeping up with tax case law and obtaining tax law interpretations. - Risk analysis
Identifying areas of tax risk for companies in SSE and PSI. - Trainings
Organisation of workshops and seminars on tax law and EU state aid law, with particular focus on tax aspects in SSE and PSI. - Real estate tax exemption
Assistance in applying for exemption from this tax as part of investment aid.
Where to look for information on PSI?
The Polish Investment Zone is regulated under the New Investment Promotion Act and replaces the previous state aid mechanism available in Special Economic Zones. At present, investors cannot obtain new permits to conduct business activities in the Special Economic Zones, but they can benefit from the decision to support new investments under the PSI.
More detailed information on the conditions for obtaining relief in specific locations can be found on the official website of the Map of the Polish Investment Zone Welcome | Biznes.gov.pl - Information Service for Entrepreneurs. It is worthwhile to look for investment areas within the boundaries of existing special economic zones, where you can also benefit from support for a period of 15 years. Recently, the Ordinance of the Council of Ministers of 27 December 2022 on public aid granted to certain entrepreneurs for the implementation of new investments (sejm.gov.pl) made it easier to access support in the case of reinvestments, i.e. investments related to the expansion of existing plants.
