Tax relief is a form of support for businesses planning new investments.
Businesses may receive between 8 and 12 years to complete an investment and make use of the tax relief, regardless of company size. Investments can be located anywhere in Poland, including outside the existing special economic zones.
Which investments qualify for tax relief?
Businesses can obtain tax relief for new investment projects such as:
- Establishing a new business.
- Increasing production capacity.
- Introducing new products.
- Changing the production process.
How much tax relief is available?
The amount of public aid, granted as a corporate (CIT) or personal income tax (PIT) exemption, is:
- Up to 40% for large businesses.
- Up to 60% for medium-sized businesses.
- Up to 70% for small and micro-enterprises.
These percentages are calculated on eligible costs incurred.
Where can businesses invest?
Investments can take place on any land, whether privately or publicly owned. The new law moved away from limiting public aid to investments within specially designated economic zones.
How long does the tax exemption last?
The article gives the same period for all businesses to use the public aid:
- 12 years from the date of receipt of the support decision.
Which investment projects can receive public aid?
- Businesses in traditional industry, except producers of items such as alcohol, tobacco products, steel, electricity and gas.
- Some service companies, including information technology, research and development in the natural and technical sciences, accounting and auditing, bookkeeping (excluding tax returns), technical testing and analysis, call centres, architecture and engineering.
Which businesses cannot receive investment tax relief?
Public aid is unavailable for businesses in certain sectors, including:
- Wholesale and retail trade, construction projects and works, and operating gaming centres.
Article courtesy of Biuro Rachunkowe Factura in Myślenice.